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(9) Class I or Class II farm land was hcluded in the site only if other suitble land was not available;

(10) The land is stable if previously hined; and

(11) Assurance that the requirenents set forth in Title 7, Subtitle A, Part 21 of the Code of Federal Regulations (Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970) have been met.

(b) Competitive criteria. The following criteria will be considered in the selection of grantees:

(1) Priority assigned and recommended funding level by the Governor in the State Investment Strategy for Energy Impacted Areas;

(2) The increase in the number of new employees and the percentage of increase in employment in coal and/or uranium development activities in the year of designation within the approved designated area (years projected will be averaged and treated equally);

(3) The severity of need for housing, public facilities, services that has resulted from coal or uranium development activities in relation to available financial resources within the approved designated area covered by the plan calling for the project;

(4) Local priority for the project;

(5) The amount of effort by State and local government to meet the needs of the area covered by the application as called for in the State Investment Strategy for Energy Impacted Areas in relation to available financial resources;

(6) An assessment of the environmental impacts of the project; and

(7) The nature of comments and recommendations of A-95 clearing

house(s).

§ 1948.87 [Reserved]

§ 1948.88 Direct land acquisition by FmHA.

(a) FmHA may take action to acquire real property directly upon the written request of the Governor of the State in which the real property is located. FmHA will not acquire real property directly under this section without such a request.

(b) All requests for direct land acquisition should be submitted to the FmHA State Director. The following conditions must be met prior to the submission of a request for direct acquisition by FmHA:

(1) The State or local government serving the area must lack power to condemn land of this type for this purpose and must supply an opinion by the State Attorney General that this authority is lacking;

(2) The real property is to be used as a site for needed housing, public facilities, or services;

(3) The site acquisition is called for in a FmHA approved plan;

(4) The site is specifically identified by a FmHA approved plan;

(5) State and local governments have been unable to obtain the real property for a price which does not substantially exceed its fair market value; and suitable alternate sites are not available;

(6) The land is not Indian Trust land;

(7) The land is not U.S. Forest Service land; and

(8) There is legal authority to undertake the proposed project.

(c) FmHA may acquire Federal real property not prohibited in paragraphs (b) (6) and (7) of this section for purposes contained in this subpart. Farm land (Class I and II) will not be considered unless there is no other suitable land available.

(d) If the State Director determines that no other suitable real property exists that can be obtained at a price which does not substantially exceed its fair market value, and if the appropriate State or local government lacks condemnation authority as evidenced by opinion from the Attorney General, and there is authority to undertake the proposed project, then the State Director shall follow the procedures set out in Title 7, Subtitle A, Part 21 of the Code of Federal Regulations (Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970) and immediately open negotiations to directly acquire the real property through purchase or trade.

(e) The FmHA State Director may acquire real property by purchase to trade for other real property when

FmHA has been requested to acquire real property by the Governor of the State in which the real property is located.

(f) The Governor shall submit, with this request, a commitment from the State to acquire real property, together with a plan of compensation to FmHA and evidence of the State's legal authority to enter into this agreement with FmHA to accept the real property and repay FmHA for the fair market value of the real property for the intended purpose.

(g) Real property acquired by FmHA shall be transferred to the State requesting by a quitclaim deed for a price equal to the fair market value in accordance with the terms of a transfer agreement.

(h) After obtaining title to the real property and prior to transfer to the State, the property shall be managed by FmHA in accordance with Part 1955, Subpart B of this chapter.

(i) The State Director shall inform the Governor that FmHA real property acquisition is not likely to occur by purchase or trade if negotiations have failed to produce acceptable results within 90 days of the request for FmHA acquisition of real property.

§ 1948.89 Land condemnation by FmHA.

(a) If FmHA attempts to acquire real property at the request of a Governor through purchase or trade and is unable to do so, FmHA may take action to condemn the real property by the following procedures:

(1) A request for condemnation shall be submitted by the FmHA State Director to the Administrator, FmHA, Washington, D.C. 20250 at the request of the Governor of the appropriate State. A copy of the Governor's request for FmHA real property condemnation and the State Attorney General's opinion that State and local government condemnation authority is lacking shall be attached to the FmHA State Director's request.

(2) The Administrator shall forward all requests for Federal condemnation to the OGC, USDA with a recommendation for action.

(3) The Administrator, FmHA shall inform the Governor of any action on the request for condemnation.

(4) Real property condemned by FmHA shall be transferred to the requesting State by a quitclaim Deed for a price equal to the fair market value of the real property in accordance with terms of a negotiated real property transfer agreement.

(5) After obtaining title to real property and prior to transfer to the State, the property shall be managed by FmHA in accordance with Part 1955, Subpart B of this chapter.

(b) FmHA may not condemn Indian Trust Land or U.S. Forest Service Land.

§ 1948.90 Land transfers.

(a) Transfers of real property acquired by FmHA.

(1) A request for FmHA acquisition of real property by a Governor of a State constitutes an agreement by that State to receive said real property and to reimburse FmHA for the fair market value of said real property for the intended use.

(2) Terms and conditions, including reimbursement terms, for real property transfers shall be set forth in a Real Property Transfer Agreement between the Administrator, FmHA and the appropriate Governor. These terms and conditions will be agreed upon by FmHA and the State prior to FmHA attempting to acquire the property. These agreements shall be prepared after consulting with OGC, and forwarded for prior approval by the FmHA National Office.

(3) All funds from real property transfers received by FmHA shall be deposited in the U.S. Treasury.

(b) Transfer of real property acquired and/or developed with grant funds from a grant made under this subpart to a person.

(1) Real property acquired and/or developed under this subpart may be transferred to a person for the purposes of construction of privatelyowned housing.

(2) All transfers of real property to a person must be approved by the FmHA State Director of the appropriate State.

(3) Transfer of real property by a recipient of assistance under this subpart to a person must be by contract

13-021 O-83--12

which: acknowledges the use of funds provided under this subpart to acquire or develop the site; specifies the date of performance prior to delivery of the deed; provides for FmHA concurrence before changes or modifications; and assures FmHA that the real property will be used for the purposes under which the grant was made.

(4) Proceeds derived from the sale of land acquired or developed through the use of a grant provided under this subpart must be divided between the grantee and FmHA on a pro rata basis. A grantee may not recover its costs from sale proceeds to the exclusion of FmHA. The amount to be returned to FmHA is to be computed by applying the percentage of FmHA grant participation in the total cost of the project to the proceeds from the sale. Funds will be transmitted to the Finance Office in accordance with FmHA Instruction 1951-B, § 1951.58(j), available in FmHA offices.

(5) All funds received by FmHA from real property transfers shall be deposited in the U.S. Treasury.

(42 U.S.C. 8401; delegation of authority by the Secretary of Agriculture, 7 CFR 2.23; delegation of authority by the Assistant Secretary for Rural Development, 7 CFR 2.70)

[44 FR 35984, June 19, 1979, as amended at 46 FR 33022, June 26, 1981]

§ 1948.91 Inspections of development.

Inspections will be made by the FmHA State Engineer or other employee designated by the FmHA State Director to ascertain whether site development is proceeding in accordance with plans and specifications. Such inspections are solely for the benefit of the Government and not for the benefit of the Grantee or any other person.

§ 1948.92 Grant approval and fund obligation.

(a) The FmHA State Office shall review the docket to determine whether the proposed grant complies with this subpart and that funds are available.

(b) The FmHA State Director shall be the approving officer on all grants made under this subpart.

(c) If at any time prior to grant approval it is decided that favorable

action will not be taken on a preapplication or application, the FmHA State Director will notify the applicant in writing of the reasons why the request was not favorably considered. The notification to the applicant will state that a review of this decision by FmHA may be requested by the applicant in accordance with FmHA Instruction 1900-B.

(d) If a grant is recommended, Form FmHA 440-1 and the proposed grant agreement and scope of work will be prepared and forwarded to the applicant for signature.

(e) When Form FmHA 440-1 and the grant agreement and scope of work are received by the applicant, the applicant will sign these documents and forward them to the State Director.

(f) Form FmHA 071-1, "Project Information Card," will be prepared by the State Director and sent to the Director of Information, Farmers Home Administration.

(g) If the State Director approves the project, the following actions will be taken in the order listed:

(1) The State Director, or a designee, will telephone the Finance Office requesting that grant funds for a particular project be obligated. Immediately after contacting the Finance Office, the requesting official shall furnish the requesting office's security identification code. Failure to furnish the security code will result in the rejection of the request of obligation. After the security code is furnished, the required information from Form FmHA 440-1 shall be furnished to the Finance Office. Upon receipt of the telephone request for obligation of funds, the Finance Office shall record all information necessary to process the request for obligation in addition to the date and time of request.

(2) The individual making the request shall record the date and time of the request.

(3) The Finance Office will notify the FmHA State Office by telephone when funds are reserved and the date the funds will be obligated. If funds cannot be reserved for a project, the Finance Office will notify the FmHA State Office that funds are not available. The obligation date will be six

working days from the date the request for obligation is processed.

(4) The Finance Office will send Form FmHA 440-57, "Acknowledgement of Obligated Funds/Check Request," to the FmHA State Director, informing the State Director of the reservation of funds with the obligation date inserted as required by Item 9 on the Forms Manual Insert (FMI) for Form FmHA 440-57.

(5) Form FmHA 440-1 will not be mailed to the Finance Office.

(6) A copy of Form FmHA 440-1 will be sent the FmHA National Office.

(7) The State Director shall notify the Director of Information in the FmHA National Office with a recommendation that the project announcement be released.

(8) An executed copy of Form FmHA 440-1 shall be sent to the applicant along with an executed copy of the grant agreement and scope of work on or before the date funds are obligated.

(9) The actual date of applicant notification will be entered on the original of Form FmHA 440-1 and the original of the form will be included as a permanent part of the file.

(10) For planning grants, Standard Form 270, "Request for Advance or Reimbursement," will be sent to the applicant for completion and return to FmHA. For site acquisition and site development grants, Standard Form 271, "Outlay Report and Request for Reimbursement for Construction Programs," will be sent to the applicant for completion and returned to FmHA.

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(11) If it is determined that a project will not be funded or if major changes in the scope of the project are made after release of the approval nouncement, the FmHA State Director will notify the Director, Legislative Affairs and Public Information Staff (LAPIS) by telephone or electronic mail giving the reasons for such action. The Director, LAPIS, will inform all parties who were notified by the project announcement that the project will not be funded or of major changes in the project using a procedure similar to the announcement process. Form FmHA 1940-10, "Cancellation of U.S. Treasury Check and/ or Obligation," will not be submitted to the Finance Office until five work

ing days after notifying the Director, LAPIS.

(7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; sec. 10 Pub. L. 93-357; delegation of authority by the Sec. of Agri., 7 CFR 2.23; delegation of authority by the Under Secretary for Small Community and Rural Development, 7 CFR 2.70)

[44 FR 35984, June 19, 1979, as amended at 47 FR 36416, Aug. 20, 1982]

§ 1948.93 Appeal procedure.

Any grantee or applicant for FmHA assistance under this subpart who has been directly and adversely affected by an administrative decision by FmHA may appeal such decision in accordance with FmHA Instruction 1900-B.

§ 1948.94 Reporting requirements.

(a) For planning grants, SF-270 shall be submitted by grantees on an asneeded basis but not more frequently that once every 30 days. SF-269, "Financial Status Report," and a project performance activity report will be required of all grantees on a quarterly basis. SF-269 and a final project performance report will also be required. These final reports may serve as the last quarterly reports. Grantees shall constantly monitor performance to ensure that time schedules are being met, projected work by time periods is being accomplished, and other performance objectives are being achieved. All grantees except States should submit an original of each report and one copy to the appropriate FmHA District Office. When the grantee is a State, an original should be submitted to the appropriate FmHA State Office. The project performance reports shall include, but need not be limited to the following:

(1) A comparison of actual accomplishments to the objectives established for that period;

(2) Reasons why established objectives were not met;

(3) Problems, delays, or adverse conditions which will materially affect attainment of planned project objectives, prevent the meeting of time schedules or objectives, or preclude the attainment of project work elements during established time periods.

This disclosure shall be accompanied by a statement of the action taken or contemplated and any Federal assistance needed to resolve the situation; and

(4) Objectives established for the next reporting period.

(b) For site development and land acquisition grants, grantees shall submit Form SF-271 for payment of site development costs. Multiple advances will be made in accordance with FmHA Instruction 402.1 (available in any FmHA office) and will be made as needed to cover required disbursements for not less than 30 day periods. Advances will be requested for the next 30 day period by the grantee on Form SF-272, "Report of Federal Cash Transactions." Each payment estimate must be approved by the grantee. A final Form SF-272 will be subImitted to FmHA to include the final advance not later than 90 days after the final advance.

§ 1948.95 Grant monitoring.

Each grant will be monitored by FmHA to ensure that the Grantee is complying with the terms of the grant and that the project activities are completed as approved. This will involve on-site visits to the project area and review of quarterly and final reports by FmHA.

§ 1948.96 Audit requirements.

(a) Audit requirements for Site Development and Acquisition Grants will be made in accordance with FmHA Instruction 1942-G.

(b) Audits for planning grants made in accordance with State statutes or regulatory agencies will be acceptable provided they are prepared in sufficient detail to permit FmHA to determine that grant funds have been used in compliance with the proposal, any applicable laws and regulations, and the grant agreement. A copy of the audit shall be submitted to the State Director as soon as possible but in no case later than 90 days following the period covered by the grant.

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GROWTH MANAGEMENT AND HOUSING PLANNING FOR APPROVED DESIGNATED ENERGY IMPACTED AREAS

This Agreement is between (Name),

or

and

(Address), (Grantee) and the United States of America acting through the Farmers Home Administration (Grantor FmHA). Grantee has determined to undertake certain growth management and housing planning for energy impacted areas at an estimated cost of $has duly authorized such planning. The Grantor agrees to grant to Grantee a sum not to exceed $subject to the terms and conditions established by the Grantor; provided, however, that any grant funds actually advanced and not needed for grant purposes shall be returned immediately to the Grantor. The Grantor may terminate the grant in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the conditions of the grant. In consideration of said grant by Grantor to Grantee, to be made pursuant to Section 601 of the Powerplant and Industrial Fuel Use Act of 1978 (Pub. L. 95-620) for the purpose only of defraying the planning costs as permitted by applicable Farmers Home Administration regulations:

Part A

Grantor and Grantee agree:

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