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FARMERS HOME ADMINISTRATION

10.400 COMPREHENSIVE AREAWIDE WATER AND SEWER PLANNING GRANTS

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE

AUTHORIZATION: Consolidated Farmers Home Administration Act of 1961, as amended, section 306; 7 U.S.C. 1926. OBJECTIVES: To promote efficient and orderly development of rural communities; to provide the information necessary to avoid overlapping, duplication, underdesign or overdesign of the community water and sewer facilities that may be constructed in the area covered by the plan.

TYPES OF ASSISTANCE: Project Grants:

USES AND USE RESTRICTIONS: Comprehensive planning grants may be made to provide technical and professional services and to pay for necessary test wells and soil and water investigations. The plan must be limited to a rural area and may not include towns or villages with populations in excess of 5,500. ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Organizations such as public bodies, counties, townships, state, regional and local planning commissions are eligible providing they: (1) lack the resources to immediately finance the planning; (2) are broadly based and representative of the interest of the rural area as it can be under state statutes; (3) propose a plan that is supported by local officials and private and public agencies interested in the development of water and sewer facilities in the area; and (4) have authority to prepare official comprehensive plans.

Beneficiary Eligibility: Planning must be limited to the rural areas. Credentials/Documentation: The applicant must submit evidence of authority to prepare official comprehensive plans, evidence that resources are not immediately available to finance the plan and evidence that plan is consistent with other plans. APPLICATION AND AWARD PROCESS: Preapplication Coordination: All proposals are reviewed by state, metropolitan and local units of local government before an application is filed. Up to 60 days is allowed for the review. Intent to file must be coordinated in accordance with Office of Management and Budget Circular No. A-95.

Application Procedure: SF 101, "Application, Federal Assistance for Public Works and Facility Type Projects," is used. Send application to local FHA office.

Award Procedure: After application has been approved by the county supervisor and the county committee, it is given final approval - depending on the size of the application by the county supervisor, district supervisor or the state director. Following approval, payment authorization is forwarded to the National

Finance Office who issues the check. Notification of award must be given to the designated State Central Information Reception Agency (SF 240).

Deadlines: None.

Range of Approval/Disapproval Time: 30 to 90 days. Appeals: If an application is rejected, the reasons for rejection are fully stated. The applicant may reapply at any time that the reasons for rejection are corrected. Renewals: Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Grant assistance may be for the total cost of the plan.

Length and Time Phasing of Assistance: Not applicable. POST ASSISTANCE REQUIREMENTS:

Reports: Reports are required to the extent necessary to determine that the provisions of the grant agreement are met. Audits: Not required.

Records: Records are required to the extent necessary to determine that the provisions of the grant agreement are met. FINANCIAL INFORMATION:

Account Identification: 05-60-2066-0-1-352.

Obligations: (Grants) FY 70 $3,019,000; FY 71 est $4,000,000; and FY 72 est $2,000,000.

Range and Average of Financial Assistance: $500 to $317,000; $12,000.

PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 179 grants were made.

REGULATIONS, GUIDELINES, AND LITERATURE: Fact sheet,

"Grants for Preparation of Comprehensive Area Plans for Water and Sewer Systems," no charge. "Farmers Home Administration," PA 705, no charge.

INFORMATION CONTACTS:

Regional or Local Office: Contacts should be made with the county Farmers Home Administration office serving the area in which the project is located. If unable to locate the county office contact the headquarters office listed below.

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. 20250. Telephone: (202) 388-7968.

RELATED PROGRAMS: 10.411, Rural Housing Site Loans; 10.414,

Resource Conservation and Development Loans; 10.418, Water and Waste Disposal Systems for Rural Communities; 11.302, Economic Development Planning Assistance; 14.301, Basic Water and Sewer Facilities - Grants.

10.404 EMERGENCY LOANS

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION,
DEPARTMENT OF AGRICULTURE
AUTHORIZATION: Sections 321 through 327 of Public Law 87-128,
as amended; (7 U.S.C. 1961 through 1967), and modified by
Public Law 91-606.

OBJECTIVES: To assist farmers and ranchers in continuing their normal farming and ranching operations following severe losses caused by natural disasters.

TYPES OF ASSISTANCE: Direct Loans.

USES AND USE RESTRICTIONS: For operating and living expenses and to (a) replace equipment and livestock damaged or destroyed by natural disasters, and (b) make real estate repairs made necessary by natural disasters. These loans are not made to finance major adjustments and expansions in farming and ranching operations and are generally not made to refinance secured debts. Exceptions are made when (1) a loan is being made to repair or replace an essential farm home or essential farm service buildings damaged or destroyed by a major disaster declared by the President, and (2) it is necessary to refinance secured debts in order for the applicant to retain the property or carry the secured debts in an orderly manner. The total amount of the loan for all purposes must be within the applicant's repayment ability and he

must meet security requirements. These loans are made in counties designated as Emergency loan areas by the Secretary of Agriculture and in any other county, without a designation, where only a small number of loans will be made. In either event, there must have been severe damage by a major disaster declared by the President or a natural disaster determined by the Secretary of Agriculture.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: (a) Established farmer or rancher, (b) citizen of United States, (c) severe property damage or crop losses caused by a natural disaster, (d) good character and with necessary ability to succeed, (e) manages his farming or ranching operations, and (f) in need of credit. Applicants who cannot meet these requirements are not eligible. The former statutory Emergency loan eligibility requirement of inability to obtain credit elsewhere is suspended by Public Law 91-606 for loans made before the end of the first full operating year following the disaster. Thereafter, however, applicants must be unable to obtain credit elsewhere in order to qualify for additional Emergency loans based on the same disaster. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Applicant must establish that he has had severe property damage or crop losses caused by natural

disaster.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination: None.

Application Procedure: Application form provided by the Farmers Home Administration must be presented to the FHA county office servicing the applicant's county. FHA personnel assist applicants in completing application form.

Award Procedure: FHA County Supervisors, District Supervisors, and State Directors are authorized to approve these loans, subject to certain administrative requirements, after applicants are determined eligible by County or Area Committees. Deadlines: Deadline for application for initial loans is expiration date of the area designation made by the Secretary of Agriculture for the area.

Range of Approval/Disapproval Time: Approximately 2 weeks. Appeals: Applicant's request for reconsideration by County Committee is granted. Applicant may meet with the County Committee to present facts concerning his situation, needs, and potential.

Renewals: None.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: None.

Length and Time Phasing of Assistance: This varies in accordance with needs in individual cases.

POST ASSISTANCE REQUIREMENTS:

Reports: Borrowers are required to account for all crops and income.

Audits: This varies in individual cases - none in most cases.

Records: Record of production, income, and expenses during the period of the loan.

FINANCIAL INFORMATION:

Account Identification: 05-60-4104-0-3-351.

Face Value of Loans (Direct) FY 70 $89,430,160; FY 71 $67,000,000; and FY 72 $67,000,000.

Range and Average of Financial Assistance: $6,500; (full range of farming operations from smallest to largest.) PROGRAM ACCOMPLISHMENTS: Since the beginning of the program in 1949, approximately 508,000 farmers and ranchers have received $1,281,530,089 in loans to continue their normal operations. In fiscal year 1970, 12,778 loans valued at $89,430,160 were made.

REGULATIONS, GUIDELINES, AND LITERATURE: (1) USDA
Pamphlet - "Emergency Loans" (PA 490); (2) USDA Pamphlet -
"Farmers Home Administration" (PA 705); and (3) Information
Sheet - "Farmers Home Administration Emergency Loans for
Farmers and Ranchers."
INFORMATION CONTACTS:

Regional or Local Office: State office, Farmers Home
Administration (see appendix).

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. Telephone: (202) 388-7967.

RELATED PROGRAMS: 10.054, Emergency Conservation Measures; 59.002, Economic Injury Disaster Loans.

10.405 FARM LABOR HOUSING LOANS AND GRANTS (Labor Housing)

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Housing Act of 1949 as amended; sections 514 and 516; Public Law 89-117 and 89-754; 42 U.S.C. 1484 and 1486. OBJECTIVES: To provide decent, safe, and sanitary low-rent housing and related facilities for domestic farm laborers.

TYPES OF ASSISTANCE: Project Grants; Direct Loans. USES AND USE RESTRICTIONS: The loans and grants may be used for: construction, repair, or purchase of housing; acquiring the necessary land and making improvements on the land for the housing; and developing related facilities including recreation areas, central cooking and dining facilities, small infirmaries, laundry facilities, fallout shelters, and other essential equipment and facilities.

Restrictions on the use of funds are that: the housing must be of a practicable type and must be constructed in an economical manner and not of elaborate or extravagant design or material; loan and grant funds and any funds furnished by the applicant must be placed in a supervised bank account. ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Loans are available to farmers, nonprofit organizations, and public bodies. States, political subdivisions of states, and certain nonprofit organizations and other public organizations may qualify for grants. Grants are available when there is a pressing need and when there is a reasonable doubt that such facilities could be provided without grant assistance. Beneficiary Eligibility: Domestic farm laborers. A domestic farm

laborer is a person who: (a) Receives a substantial portion of his income as a laborer on a farm in the United States or (b) resides in the United States after being legally admitted for permanent residence. Those eligible include the families of such persons. Credentials/Documentation: The applicant must furnish factual evidence of the following: (a) the number of domestic farm laborers currently being used in the area, (b) the kind of labor performed, (c) the future need for domestic farm labor in the area, (d) the kind, condition, and adequacy of housing presently used for such labor, (e) ownership of presently occupied housing, and (f) ability of workers to pay necessary rent.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination: Intent to file application must be coordinated in accordance with Office of Management and Budget Circular No. A-95.

Application Procedure: Made in the form of a letter to the County Office of the Farmers Home Administration fully documenting the need for the loan or grant and the proposed amount needed. Attachments relating to the size of proposed project, estimated cost, budget and need are also required. The State Director will determine the amount of assistance after first determining if all other sources of funding have been explored.

Award Procedure: After application has been approved by the County Supervisor and the county committee, it is given final approval - depending on the size of the application by the County Supervisor, District Supervisor or the State Director. Following approval, payment authorization is forwarded to the National Finance Office who issues the check. Notification of award must be made to the public and the designated State Central Information Reception Agency (SF 240).

Deadlines: None.

Range of Approval/Disapproval Time: 90 to 270 days from the time discussion begins.

Appeals: Applicants request for reconsideration by county committee is granted. Applicant may meet with county committee to present facts concerning his situation, needs and potential. Renewals: Applicants may reapply at any time. ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: In case of a grant part of the cash development cost must be obtained from other sources. This may include funds made available through the power to levy taxes, assessments, or charges or from other credit sources including a loan under Section 514.

Length and Time Phasing of Assistance: Not applicable. POST ASSISTANCE REQUIREMENTS: Reports: During the first year of operation, monthly progress reports are to be made to the FHA county supervisor. Sometime after the first 4 months, but before the ninth month of operation, the FHA district supervisor will review and report on the project. Audits: Required annually.

Records: Adequate operating records must be maintained by borrower.

FINANCIAL INFORMATION:

Account Identification: Loans, 05-60-4141-0-3-352; grants,

05-60-2004-0-1-352.

Obligations/Face Value of Loans: (Project Grants) FY 70 $2,134,000; FY 71 est $3,700,000; and FY 72 est $3,767,000; (Direct Loans) FY 70 $1,549,260; FY 71 est $10,000,000; and FY 72 est $10,000,000.

Range and Average of Financial Assistance: Loans, $76,000; $10,000 to $650,000; and grants, $300,000; $50,000 to $1,200,000. PROGRAM ACCOMPLISHMENTS: Since the beginning of the program over $17,000,000 of loan funds and about $13,800,000 grant funds have been provided to build or improve labor housing facilities for 4,146 individual families and dormitory space for

3,307 individuals. In fiscal year 1970, 30 projects valued at $3,683,030 were initiated.

REGULATIONS, GUIDELINES, AND LITERATURE: "Farm Labor Housing Loans and Grants": PA-521 (no charge); 7 CFR 1822.202-1822.221.

INFORMATION CONTACTS:

Regional or Local Office: Interested persons should contact the county Farmers Home Administration Office.

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. 20250. Telephone: (202) 388-7967. RELATED PROGRAMS: 10.410, Low to Moderate Income Housing Loans; 10.415, Rural Rental Housing Loans; 14.103, Interest Reduction Payments Rental and Cooperative Housing for Lower Income Families.

10.406 FARM OPERATING LOANS

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farmers Home Administration Act of 1961, as amended; Public Law 87-128; 7 U.S.C. 1942, Section 312. OBJECTIVES: To enable operators of not larger than family farms, through the extension of credit and supervisory assistance, to make efficient use of their land, labor, and other resources. TYPES OF ASSISTANCE: Direct Loans.

USES AND USE RESTRICTIONS: Loan funds may be used to: (1) purchase livestock, poultry, fur bearing and other farm animals, fish, and bees; (2) purchase farm, forestry, recreation, or nonfarm enterprise equipment; (3) provide operating expenses for farm, forestry, recreation, or nonfarm enterprise; (4) meet family subsistence needs and purchase essential home equipment; (5) make minor real estate improvements; (6) refinance secured and unsecured debts; (7) pay property taxes; (8) pay insurance premiums on real estate and personal property; (9) other miscellaneous purposes. Use restrictions are shown under applicant eligibility.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Must: (a) have a farm background and the experience or training needed to be successful in the proposed operation; (b) be a U.S. citizen of legal age; (c) be unable to obtain sufficient credit elsewhere on reasonable terms; (d) possess the character, industry, and ability to carry out the proposed operation; (e) after the loan is made conduct not larger than a family farming operation as an owner or tenant. Beneficiary Eligibility: Not applicable.

Credentials/Documentation: Applicant must establish that credit is not available elsewhere for the requested purposes. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None.

Application Procedure: Applicant files form FHA 410-1, "Application for FHA Services," at the local county office of the Farmers Home Administration.

Award Procedure: Certification as to eligibility is made by a local county committee of three persons.

Deadlines: None.

Range of Approval/Disapproval Time: Applications are considered by the county committee within 30 days from date of application. Appeals: Applicants request for reconsideration by county committee is granted. Applicant may meet with county committee to present facts concerning his situation, needs, and potential. Renewals: Applicants may reapply at any time.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Not applicable.

Length and Time Phasing of Assistance: Loans are scheduled for repayment over periods up to 7 years with renewals up to 5 years when justified.

POST ASSISTANCE REQUIREMENTS:
Reports: Not applicable.
Audits: Not applicable.
Records: Not applicable.

FINANCIAL INFORMATION:

Account Identification: 05-60-4220-0-3-35.

Face Value of Loans: (Direct) FY 70 $275,000,000; FY 71 est $275,000,000; and FY 72 est $275,000,000.

Range and Average of Financial Assistance: Unpaid principal balance may not exceed $35,000. Average: $8,200. PROGRAM ACCOMPLISHMENTS: The operating loan program is serving approximately 100,000 family farms and extends approximately 50.000 operating loans yearly to assist them i conducting their farming programs. Since the inception of the program in 1946 over $42 billion has been loaned. REGULATIONS, GUIDELINES, AND LITERATURE: "Operating Loans for Better Farming, Better Living," PA 182; "Loans for Nonfarm Enterprises," PA-908; "Farmers Home Administration," PA-705.

INFORMATION CONTACTS:

Regional or Local Office: Interested persons should contact the county Farmers Home Administration Office.

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. 20250. Telephone: (202) 388-7967.

RELATED PROGRAMS: 10.407, Farm Ownership Loans; 64.112, Veterans Farm Loans.

10.407 FARM OWNERSHIP LOANS

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE

AUTHORIZATION: Consolidated Farmers Home Administration Act of 1961, as amended; 7 U.S.C. 1923, Section 303. OBJECTIVES: To assist eligible farmers and rangers, through the extension of credit and supervisory assistance, to become owner-operators of not larger than family farms; to make efficient use of the land, labor, and other resources; to carry on sound and successful operations on the farm, and afford the family an opportunity to have a reasonable standard of living.

TYPES OF ASSISTANCE: Guaranteed Insured Loans. USES AND USE RESTRICTIONS: (1) Enlarge, improve, and buy family farms; (2) refinance debts so as to place the farming operation on a sound basis; (3) provide necessary water and water facilities; (4) provide basic soil treatment and land conservation measures; (5) construct, repair, and improve buildings needed in the operation of a family farm; (6) construct or repair farmhouses; (7) improve, establish, or buy a farm-forest enterprise; (8) produce fish under controlled conditions; (9) finance nonfarm enterprises, including recreation on all or part of the farm; (10) buy and develop land to be used for forestry purposes. Use restrictions are shown under applicant eligibility.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: An applicant must: (1) be unable to obtain adequate credit from other sources at reasonable terms; (2) be a good citizen of legal age; (3) be of good character; (4) have the necessary experience, training, and managerial ability to operate a family farm or a nonfarm enterprise; (5) agree to refinance the balance due on his loan as soon as he is able to obtain adequate credit at reasonable terms from another lender. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Applicant must establish that credit is not available elsewhere for the requested purpose. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None.

Application Procedure: Applicant files form FHA 410-1, "Application for FHA Services,” at the local county office of the Farmers Home Administration.

Award Procedure: Certification as to eligibility is made by a local county committee of three persons. Deadlines: None.

Range of Approval/Disapproval Time: Applications are considered

by the county committee within 30 days from date of application. Appeals: Applicant may request reconsideration and meet with the county committee to present facts concerning his needs and potential.

Renewals: Applicants may reapply at any time. ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Not applicable.

Length and Time Phasing of Assistance: Loans are scheduled for repayment over periods up to 40 years.

POST ASSISTANCE REQUIREMENTS:
Reports: Not applicable.
Audits: Not applicable.
Records: Not applicable.
FINANCIAL INFORMATION:

Account Identification: Direct, 05-60-4220-0-3-351; insured,

05-60-4140-0-3-351.

Face Value of Loans: (Direct) FY 70 $5,005,700; FY 71 est $5,000,000; and FY 72 (phased out); (Insured) FY 70 $256,490,900; FY 71 est $210,000,000; and FY 72 est $210,000,000.

Range and Average of Financial Assistance: Loans plus other debts against the security property owned cannot exceed $100,000 or the normal value of the security, whichever is less. Direct average $22,900; insured average $22,300.

PROGRAM ACCOMPLISHMENTS: A total of 11,491 farmers received loans during fiscal year 1970. This includes 218 direct loans made for $5,005,675 and 11,273 insured loans for $256,490,900. REGULATIONS, GUIDELINES, AND LITERATURE: Consolidated Farmers Home Administration Act of 1961, as amended, Subchapter 1 - Real Estate Loans, (Section 302) 7 U.S.C. 1922, (Section 303) 7 U.S.C. 1923, (Section 305) 7 U.S.C. 1925. “Farm Ownership Loans," PA 62, Farmers Home Administration, U.S. Department of Agriculture.

INFORMATION CONTACTS:

Regional or Local Office: Interested persons should contact the FHA County Office.

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. 20250. Telephone: (202) 388-7967.

RELATED PROGRAMS: 10.406, Farm Operating Loans; 14.143, Property Improvement Loan Insurance Construction of Nonresidential Farm Structures; 64.112, Veterans Farm Loans.

10.408 GRAZING ASSOCIATION LOANS

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farmers Home Administration Act of 1961, as amended, section 306; 7 U.S.C. 1926. OBJECTIVES: To increase the income of farm families and those who reside in rural areas and to readjust the use of land so that each acre is used for a purpose which will better serve the community. TYPES OF ASSISTANCE: Guaranteed/Insured Loans.

USES AND USE RESTRICTIONS: Loans may be made to associations

of family farmers and ranchers to acquire and develop grazing land to provide seasonal grazing for livestock belonging to association members.

Assistance is limited to farmers and ranchers. The total indebtedness cannot exceed $4,000,000.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Nonprofit associations owned, operated, and managed by memberships consisting of neighboring farmers and ranchers, who need to increase their incomes, are eligible providing the association: (1) is unable to obtain needed credit elsewhere at reasonable rates and terms and (2) has the legal authority to borrow and repay money, to pledge security for loans, and to operate the facilities or services installed with the loan. Beneficiary Eligibility: Must be a farmer or rancher.

Credentials/Documentation: Applicants must submit the documents necessary to meet the eligibility requirements. APPLICATION AND AWARD PROCESS: Preapplication Coordination: All project proposals are reviewed by State, metropolitan, and local units of government before an application is filed. Up to 60 days is allowed for the review. Application Procedure: SF 101, “Application, Federal Assistance for Public Works and Facility Type Projects," is sent to local FHA office.

Award Procedure: After application has been approved by the County Supervisor and the county committee, it is given final approval - depending on the size of the application by the County Supervisor, District Supervisor or the State Director. Following approval, payment authorization is forwarded to the National Finance Office who issues the check. Deadlines: None.

Range of Approval/Disapproval Time: 30 to 90 days. Appeals: If an application is rejected, the reasons for rejection are fully stated. The applicant may reapply at any time that the reasons for rejection are corrected. Renewals: Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: The loan assistance may equal

the project cost if the applicant is financially unable to contribute a part of the cost.

Length and Time Phasing of Assistance: Loans may be scheduled over a period of 40 years.

POST ASSISTANCE REQUIREMENTS:

Reports: During the first year of operation, monthly progress reports are to be made to the FHA county supervisor. Sometime after the first 4 months and before the end of the ninth month of operation, the FHA District Supervisor will review and make a report on the operation of the facilities.

Audits: Annual audits are required after the system goes into operation.

Records: Records and account are required to reflect the operations of the project.

FINANCIAL INFORMATION:

Account Identification: 05-60-4140-0-3-352.

Face Value of Loans: (Insured) FY 70 $7,599,000; FY 71 est $7,600,000; and FY 72 est $5,000,000.

Range and Average of Financial Assistance: $227,000; $1,500 to $1,800,000.

PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 54 loans were made.

REGULATIONS, GUIDELINES, AND LITERATURE: Farmers Home Administration, PA 705, no charge.

INFORMATION CONTACTS:

Regional or Local Office: Contacts should be made with the County Farmers Home Administration Office serving the area in which the project is located. If unable to locate the county office contact headquarters office shown below.

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. 20250. Telephone: (202) 388-7968.

RELATED PROGRAMS: 10.414, Resource Conservation and Development Loans; 10.050, Rural Environmental Assistance: 10.901, Resource Conservation and Development; 10.902, Soil and Water Conservation; 15.206, Grazing Privileges.

10.409 IRRIGATION, DRAINAGE AND OTHER SOIL AND WATER CONSERVATION LOANS

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE

AUTHORIZATION: Consolidated Farmers Home Administration Act of 1961, as amended, section 306; 7 U.S.C. 1926. OBJECTIVES: To increase the income of farm families and other rural residents and to readjust the use of land so that each acre is used for a purpose which will better serve the community. TYPES OF ASSISTANCE: Direct Loans; Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: Loans may be made to eligible applicants for irrigation, drainage, or other soil conservation measures. The services or facilities must primarily serve farmers or rural residents.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: Public or quasi-public bodies and corporations not operated for profit which will serve residents of open country and rural towns and villages up to 5,500 population may receive assistance when: (1) They are unable to obtain needed funds from other sources at reasonable rates and terms; (2) the proposed improvements will primarily serve farmers and other rural residents; and (3) they have legal capability to borrow, repay, and pledge security for the loan and to operate the facilities or services.

Beneficiary Eligibility: Facilities must primarily serve farmers and rural residents.

Credentials/Documentation: Applicant must submit the documents necessary to meet the eligibility requirements.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination: All project proposals are reviewed by State, metropolitan, and local units of government before an application is filed. Up to 60 days is allowed for the review. Application Procedure: SF 101, Application, Federal Assistance for Public Works and Facility Type Projects, is sent to local FHA office.

Award Procedure: After application has been approved by the County Supervisor and the county committee, it is given final approval - depending on the size of the application by the County Supervisor, District Supervisor or the State Director. Following approval, payment authorization is forwarded to the National Finance Office who issues the check. Deadlines: None.

Range of Approval/Disapproval Time: 60 to 90 days.

Appeals: If an application is rejected, the reasons for rejection are fully stated. The applicant may reapply at any time that the

reasons for rejection are corrected. Renewals: Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: The loan assistance may equal the project cost if the applicant is financially unable to contribute a part of the cost.

Length and Time Phasing of Assistance: Loans may be scheduled over a period of 40 years.

POST ASSISTANCE REQUIREMENTS:

Reports: During the first year of operation, monthly progress reports are to be made to the FHA county supervisor. Sometime after the first 4 months and before the end of the ninth month of operation, the FHA District Supervisor will review and make a report on the operation of the facilities.

Audits: Annual audits are required after the system goes into operation.

Records: Records and accounts are required to reflect the operations of the project.

FINANCIAL INFORMATION:

Account Identification: Direct loans, 05-60-4220-0-3-352; insured loans, 05-60-4140-0-3-352.

Face Value of Loans: FY 70 (Direct) $70,000, (Insured) $371,000; FY 71 est (Direct) $900,000, (Insured) $1,000,000; and FY 72 est (Direct) $1,000,000, (Insured) 0.

Range and Average of Financial Assistance: $45,000; $1,600 to $384,000.

PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 2 direct and 18 insured loans were made.

REGULATIONS, GUIDELINES, AND LITERATURE: "Farmers
Home Administration," PA 705, no charge.
INFORMATION CONTACTS:

Regional or Local Office: Contact should be made with the County Farmers Home Administration office serving the area in which the project is located.

Headquarters Office: Administrator, Farmers Home Administration, U.S. Department of Agriculture, Washington, D.C. 20250. Telephone: (202) 388-7968.

RELATED PROGRAMS: 10.416, Soil and Water Loans; 10.419, Watershed Protection and Flood Prevention Loans; 10.902, Soil and Water Conservation; 10.904, Watershed Protection and Flood Prevention; 15.106, Indian Construction, Maintenance, and Operation of Irrigation Projects and Related Power Systems; 15.501, Irrigation Distribution System Loans; 15.502, Irrigation Systems Rehabilitation and Betterment.

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