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USDA/RHS

RIN: 0575-AC70

Publication ID: Fall 2009

Title: Guaranteed Rural Rental Housing Program--Appraisal Requirement
Abstract: Rural Development is modifying 7 CFR 3565, section 3565.303(d)(1) to eliminate the updated appraisal requirement of the project as built for properties that meet the following criteria: (1) Have a Rural Development guaranteed loan to cost ratio of 50 percent or less, and (2) have an original appraised value equal to or greater than the section 538 guaranteed loan amount. The purpose of this change is to streamline the issuance of the permanent loan guarantee for projects that have very little risk of default. Historical foreclosure rates of low loan to cost value properties are reported to be 0.01 percent or 1 percent (Ernst & Young, LLC, Ernst & Young Confirms Positive Returns, Multi-Family Housing News, August 2004, pg. 6). Thus, Rural Development seeks to eliminate the undue burden of cost and time that an updated appraisal on low loan to cost value properties unnecessarily imposes on the borrower and Rural Development staff.
Agency: Department of Agriculture(USDA)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 7 CFR 3565
Legal Authority: 5 USC 301 7 USC 1989 42 USC 1480

Legal Deadline: None

Timetable:

Action	Date	FR Cite
Direct Final Rule	03/00/2010

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: No	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: Monica Cole Finance and Loan Analyst Department of Agriculture Rural Housing Service STOP 0781, 1400 Independence Avenue SW, Washington, DC 20250-0781 Phone:202 720-1251 Email: monica.cole@wdc.usda.gov