§ 23.10 Administration. (a) The Regional Programs will be administered through four Regional Rural Development Centers hereafter referred to as "Regional Centers" in cooperation with the Extension Service and the Cooperative State Research Service. The Director of each Regional Center shall be responsible for compliance with all appropriate provisions of Title V and the regulations of this subpart. Regions as delineated for purposes under section 503(b)(2) will be conterminous with the regional delineation by the National Association of State Universities and Land Grant Colleges. Each Regional Center will be established by the regional association of State Agricultural Experiment Station Directors and the regional organization of Cooperative Extension Directors in the region to be served by the Regional Center. These associations and organizations will designate the location of the Regional Center. (b) Although the Regional Center will administer the program, it is also expected that it will draw on expertise from outside the Regional Center. The Director of each Regional Center shall seek advice and assistance from regional and subregional committees, groups or persons who can contribute to the Regional Center's program. § 23.11 Board of Directors. (a) For each Regional Center there shall be a Board of Directors selected by the Regional Association of Agricultural Experiment Station Directors and the Regional Organization of Cooperative State Extension Directors. Membership on the Board of Directors shall include representatives from State Cooperative Extension Services and State Agricultural Experiment Stations from the States in the region and/or other State administrators of programs carried out under Title V in the region. (b) The Director of each Regional Center will be responsible to the Board of Directors for the Regional Program conducted at that Regional Center. The Regional Annual Plan of Work will be developed by the Director and reviewed and approved by the Board of Directors. § 23.12 Availability of funds. Available funds will be allocated equally and following approval of a Regional Annual Plan of Work paid to the Directors of the four Regional Centers. Funds will be available for Regional Programs for expenditures authorized by section 503 (c) of Title V, in the fiscal year for which the funds were appropriated and the next fiscal year. § 23.13 Plan of Work. (a) A Regional Plan of Work for carrying out the programs authorized to be funded under section 503(b)(2) of Title V shall be prepared. The Plan of Work should include: (1) A brief narrative statement including identification of high priority knowledge, skill, and organization needs for rural development program and policy purposes in the region and identification of technical consultation, training, and personnel needs of research and extension workers in support of rural development programs. (2) A statement indicating: (i) The types of personnel to be trained, technical consultation to be conducted, the estimated number of participants, the location or locations where the program will be conducted, and the staff who will conduct the work; (ii) The types of topical areas of rural development for which the synthesis of available research knowledge for rural development purposes is planned; (iii) The type of high priority rural development research which will be undertaken as funds permit and the staff which would do the research; (iv) The type of evaluation studies which will be made and the staff which will do the evaluation; and (v) The relationship of the Plan of Work to priorities activated under Subpart A of this Part, which in turn support State development strategies. (3) A concise statement of the organization structure for planning and con ducting the program funded under section 503(b)(2). (4) A plan for evaluating the usefulness of the program and the effectiveness (5) Provision for making an annual progress report to the Assistant Secretary for Conservation, Research and Education which will document achievements pertaining to the goals and objectives as stated in the Plan of Work. (6) A budget statement to be submitted on forms provided by the Assistant Secretary for Conservation, Research and Education. (b) The Plan of Work shall be coordinated with the work program of other pertinent multi-State organizations or bodies for those activities of the Regional Rural Development Centers which go beyond direct assistance to individual State programs conducted under Title V. (c) The Director of the Center will forward four copies of the Plan of Work to the Assistant Secretary for Conservation, Research and Education, U.S. Department of Agriculture, Washington, D.C. 20250, by a time to be specified by the Assistant Secretary for Conservation, Research, and Education. (d) Regional Annual Plans of Work not meeting the above criteria will not be approved by the Assistant Secretary for Conservation, Research and Education. Dated October 10, 1973. ROBERT W. LONG, [FR Doc. 73-21976 Filed 10-17-73; 8:45 am] CHAPTER XVIII-FARMERS HOME ADMINISTRATION, DEPARTMENT OF AGRICULTURE SUBCHAPTER B-LOANS AND GRANTS PRIMARILY FOR REAL ESTATE PURPOSES [FHA Ins. 442.1; AL-870(442)] PART 1823-ASSOCIATION LOANS AND GRANTS-COMMUNITY FACILITIES, DEVELOPMENT, CONSERVATION, UTILIZATION Water and Sewer Project Loans; Preliminary Inquiries; Deletion Section 1823.36 of Subpart A of Part 1823, Title 7, Code of Federal Regulations 137 FR 28607), is deleted. The provisions of this section which pertain to the handling of preliminary inquiries for loan and grant assistance for water and sewer projects are no longer applicable. Since its provisions are no longer applicable notice and public procedure thereon are unnecessary. 7 U.S.C. 1989) delegation of authority by the Sec. of Agri., 38 FR 14944, 14948, 7 CFR 2.23; delegation of authority by the Asst. Sec. for Rural Development, 38 FR 14944, 14952, 7 CFR 2.70.) Effective date.-This deletion is effective on October 18, 1973. On pages 16364 through 16374 of the FEDERAL REGISTER, there was published a notice of proposed rulemaking to issue an amendment of Subpart A of Part 1823 of Title 7, Code of Federal Regulations, by deleting the entire part of Subpart A as it appears at 37 FR 12036; 37 FR 20108; and 37 FR 28607, and issuing regulations to facilitate the requirements of community facilities in the area of loan making, planning and developing community facilities, and information pertaining to preparation and issuance of evidences of debt by applicants. These regulations are issued in the form of a revised Subpart A as follows: Community Facility Loans.. Community Facilities-Planning, Bidding, Contracting, Information Pertaining to Preparation of Notes of Bonds and §§ 1823.1 to §§ 1823.21 to §§1823.41 to 1823.48. Interested persons were given 21 days in which to submit comments, suggestions, or objections regarding the amendment. All comments received have been considered and incorporated where appropriate. Substantive changes are as follows: 1. The provision for approval of application by the State Governor or his designee has been deleted. 2. The provision for the State Governor to establish the priority of application approval has been deleted. 3. A revision has been made which provides that FHA shall cooperate fully with appropriate state agencies in the making of loans in a manner which will assure maximum support of the states' strategies for development of rural areas. 4. A revision has been made which provides that FIA will fully consider all OMB Circular A-95 agency comments and priority recommendations in selecting application for funding. 5. A revision has been made which allows private corporations organized under the general profit corporation laws to be eligible for FHA assistance under certain conditions. 6. A revision has been made which allows loans for social, cultural, recreational, and other like purposes to be made to other than public body type organizations when certain conditions are met. 7. A revision has been made regarding scheduled repayment dates. 8. The requirement for projects to be consistent with comprehensive areawide plans has been deleted. 9. A revision has been made which establishes a "review of decision" procedure for rejected applications. 10. A revision has been made which requires the borrower to submit evidence that required property and liability insurance, workman's compensation, and fidelity bond premiums have been paid. 11. A revision has been made which allows FHA to require an annual audit of operation in lieu of other management reports in certain cases for public body borrowers whose loans are secured by general obligations or assessments. 12. A revision has been made which requires flood hazard insurance for facilities located in flood plains when such insurance is available at reasonable rates. 13. A revision has been made to change from $2500, to $50,000, the amount of a procurement contract which does not require formal advertising unless otherwise required by state or local law or regulations. 14. A revision has been made to provide for OGC approval of construction contracts which do not follow guide formats previously approved by FHA and that all change orders be approved by FHA. 15. A revision has been made to allow the applicant the option of not using bond counsel for issues of $50,000 or less with prior approval of FHA, provided certain conditions are met. 16. A revision has been made which will allow payments on bonds purchased by FHA to be submitted directly to the Finance Office by the borrower. Additional comments may be submitted on or before February 16, 1974, and will be considered for incorporation into this subpart. These additional comments may be submitted to the Deputy Administrator Comptroller, Farmers Home Administration, United States Department of Agriculture, Room 5007, South Building, Washington, D.C. 20250. All written submissions made pursuant to this notice will be made available for public inspection at the Office of the Deputy Administrator Comptroller during regular business hours (8:15 a.m. 4:45 p.m.). The amended Subpart A reads as follows: 1823.7 1823.8 1833.9 Reserve requirements. 183.10 Security. Economic feasibility requirements. General requirements. Other Federal, State and local requirements. 183 11 Professional services and contracts related to the facility. 13.12 Applying for FHA loans. 123.13 Closing loans and fund delivery. 15.3.14 Borrower accounting, financial reporting, auditing and bank accounts. 18:3.15 Closing development grants approval under previous regulations. COMMUNITY FACILITIES PLANNING, BIDDING, CONTRACTING, CONSTRUCTING Bee. 1923.21 13.22 General. Technical services. 18.3.3 Design policies. 13.24 Water purchase contracts. 13.25 Contracts to treat sewage. 1823.26 Preliminary engineering and architectural reports. 1823-27 Construction contract forms. 193.28 Performing construction. 19329 Procurement, bidding, and contract awards. 123.41 INFORMATION PERTAINING TO PREPARATION OF NOTES OR BONDS AND BOND TRANSCRIPT Policies. DOCUMENTS FOR PUBLIC BODY APPLICANTS 183.42 Bond transcript documents. 13.43 Interim financing from commercial sources during construction period for loans of $50,000 or more. 1.3.44 Permanent instruments for FHA loans to repay interim commercial financing. 1823.45 Multiple advances of FHA funds using permanent instruments. 1823.46 Multiple advances of FHA funds using temporary debt instrument. 13.47 Minimum bond specifications. 18.3.48 Bidding by FHA. AUTHORITY.-7 U.S.C. 1989; Order of Sec. of Agr. 38 FR 14944, 14948, 7 CFR 2.23; Order of Asst. Sec. Agr. for Rural Development, 38 FR 14944, 14952, 7 CFR 2.70. § 1823.1 General. Subpart A-Community Facility Loans COMMUNITY FACILITY LOANS These §§ 1823.1-1823.15 set forth Farmers Home Administration (FHA) policies and requirements pertaining to loans for community facilities. It provides applicants with guidance for use in proceeding with their application. FHA shall cooperate fully with appropriate State agencies in the making of loans in a manner which will assure maximum support of the State's strategies for development of rural areas. State and substate A-95 agencies may recommend priorities for appliestions. FHA will fully consider all A-95 agency review comments and priority recommendations in selecting applications for funding. Applicants will find additional requirements and guides in §§ 1823.21-1823.33 and §§ 1823.41-1823.48 of this subpart. 1823.2 Applicant eligibility and priority. Facilities financed by FHA shall primarily serve rural residents. The terms "rural" and "rural area" shall not include any area in any city or town having a population in excess of 10,000 inhabitants according to the latest decennial census of the United States. (a) Applicants eligible for loans include but are not limited to municipalities, eunties and other political subdivisions of a State, such as districts and authorities; and associations, cooperatives and corporations operated on a not-for-profit basis, Indian tribes on Federal and State reservations and other Federally recognized tribes, and existing private corporations even though organized under the general profit corporation laws may come within this definition if it actually will be operated on a not-for-profit basis under such charter, bylaws, mortgage, or supplementary agreement provisions as may be required as a condition of loan approval, which are unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms; and have or will have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service and for obtaining, giving security for, and repaying the proposed loan. (1) Preference for available loan funds will normally be given to public bodies. Where this is not practicable: (i) Loans for facilities providing a utility type service such as water and sewer systems, fire and rescue, natural gas distribution systems, cable TV and the like may be made to other than public body type organizations. (ii) Loans for social, cultural, recreational facilities, and the like may be made to other than public body type organizations when (A) such facilities are fully available to the public, (B) it is not practicable for the public entity they serve to finance them, and (C) the applicant has a firm source of repayment other than and in addition to the revenue generated by the facility, which is evidenced by bonafide agreements that have permanency for the life of the loan. (2) Loans shall not be made for community electric or telephone systems; however, this does not preclude an application for such a loan from the Rural Electrification Administration to be made by it under this section when the findings required by 7 U.S.C. 1983 can be made. (b) In selecting projects, FHA shall give due consideration to State development strategies, clearinghouse comments and priority recommendations and assign priorities in accordance with the following: (1) Water and sewer system applications from any municipality or other public agency (including an Indian tribe on a Federal or State reservation or other Federally recognized Indian tribal group) in a rural community having a population not in excess of 5,500, having an inadequate water or sewer system. (2) Those projects which will enlarge, extend, or otherwise modify existing facilities to provide service to additional rural residents. (3) Those projects which involve the merging of ownership, management, and operation of smaller facilities thereby providing for more efficient management and economical service to more rural communities and residents and more orderly development of the rural area in which the facilities are located. § 1823.3 Eligible loan purposes. Funds may be used: (a) To construct, enlarge, extend, or otherwise improve community water, sanitary sewerage, solid waste disposal, and storm waste water disposal facilities. (b) To construct, enlarge, extend, or otherwise improve community facilities providing essential service to rural residents. Such facilities include but are not limited to those providing or supporting overall community development such as fire and rescue services; transportation; traffic control; community, social, cultural, and recreational benefits; industrial and business development. (c) For items relating to those facilities in paragraphs (a) and (b) of this section as follows: (1) Fees, services, and costs such as legal, engineering, fiscal advisory, recording, planning, establishing, or acquiring rights through appropriation permit, agreement or condemnation. Fees for "loan finding" are not an eligible cost item. (2) Paying interest installments in connection with loans to be repaid from facility revenue when such installments cannot be deferred until such time as the facility is generating sufficient revenue to be self supporting. Ordinarily, this will be limited to an amount sufficient to pay not more than 3 years interest after the estimated loan closing date. Funds may be included for interest installments for loans secured by general obligation bonds through the period when taxes are available for payment, ordinarily not to exceed two years. (3) Purchase existing facilities when it is determined that the purchase is necessary to provide efficient service through a community owned and operated facility, and a satisfactory agreement between buyer and seller is reached and receives FHA concurrence. (4) Construct buildings and works of modest design, size, and cost, essential to the successful operation or protection of authorized community facilities and secondary facilities such as gas or electric service lines to convey fuel or energy for, |