RCAC Home Page > News and Publications > Self-Help Builder News March 2013 Volume 6, Issue #1 >

Noteworthy items and upcoming events

Noteworthy items

Two percent energy ratio increase is back!

Administrative Notice allows new homes constructed under specific energy efficiency programs an adjustment to loan ratios as a compensating factor, ”the qualifying ratios may exceed the established thresholds by up to two percentage points… .” (Click here to access the AN notice.)

A message from Carolyn Bell on funding Section 523 grants in FY13

With appropriations still uncertain for the remainder of fiscal year (FY) 2013, it is critical that we be proactive as possible in planning and funding Section 523 Technical Assistance grants. We currently have $14.2 million available for Section 523 grants ($8.3 from the Continuing Resolution and $5.9 carryover). Since there is an immediate need to process applications, we will be taking the following steps to fund grant applications for renewal of existing grantees that are performing satisfactorily:

Existing performing grantees will be limited to a grant amount not to exceed their current grant. Funding of the grant application amount will be at 40 percent of the total amount. The balance will be obligated when additional funding becomes available. No increases in their grant will be considered. Because this is a partial funding and future funding is uncertain the following guidelines must be utilized:

• The grant agreement should be for two years and state the full amount of the grant request. Budgets, schedules and all other documents related to the grant should be considered as in the usual two year grant cycle.
• The grant agreement must be modified on the first page under the terms of the agreement, item (a) with the following two conditions:

1. (a)(1) “This is partial funding in the amount of $_____________, with  the $___________balance of the grant  being subject to the future availability of funds through the Section 523 Mutual Self-Help Program and grantee remaining in full compliance with the terms of this agreement.”
2. (a)(2) “The grantee will not start more than forty percent of the homes proposed under this grant during the first year of the grant. No other starts are authorized until additional funds have been obtained. This is intended to ensure that the homes constructed under this partial funding (40%), will be completed.”

At this time we will not be funding subsequent grant requests, pre-development grants or grants to new organizations. 

2013 Income Limits Published

The 2013 Income Limits for the Single Family Direct Loan Program were published in February. Below please find the link to the USDA, Rural Development website to see your areas income limits.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&requestInfo=DirectIncomeLimits&NavKey=incomelimit@11

Upcoming events

NeighborWorks® Training Institute
Portland, Oregon
May 6 – 10, 2013

http://nw.org/network/training/upcoming/PDX.asp

NeighborWorks will offer the popular502 Loan PackagingTraining at the Portland NeighborWorks Training Institute. This is a three-day advanced course covering USDA Rural Development’s Section 502 direct loan product, requirements, loan packaging and processing. See NeighborWorks’ web-site for all the details.

http://nw.org/network/training/training.asp

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