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USDA/RHS RIN: 0575-AC78 Publication ID: Spring 2011 
Title: Community Facility Loans--Update Contract Guide Documents 
Abstract: The Rural Housing Service (Agency) is amending its regulations to update contract guide documents and make minor revisions to streamline processing. Community Facilities uses American Institute of Architects (AIA) contract documents for the majority of their development work. Every 10 years, AIA revises their contract documents. Presently, Guide 27 includes attachments to amend AIA documents dated 1997. Replacing the attachments to Guide 27 with new attachments will conform to AIA documents dated 2007 for the architect's agreement and construction contract. Two new attachments will be added to amend AIA contract documents for Design/Build and Construction Management/Constructor contracts. Although the regulation allows these types of construction, the Agency has never had standardized guide documents to include Federal Government financing requirements. Standardized guide documents will reduce staff time spent incorporating that language into contracts individually. (1) Remove a restrictive reference in sections 1942.9(b) and 1942.18(l) that states design/build and construction management type of construction may not be used with grant funds. This regulatory requirement was placed in the regulations in the 1970's when the Agency had little/no experience with design/build or construction management. With the projects that been have completed since then, it has become apparent that the type of funding--grant or direct loan--should have no bearing on the type of construction. (2) Add language to clarify the type of Construction Management acceptable to the Agency. Since Construction Management was placed in the regulation in the 1970's, two types have evolved: Construction Management/Constructor (also called "At Risk") and Construction Management/Advisor ("No Risk"). For Agency funding purposes, it is necessary that Construction Management/Constructor be used rather than Construction Management/Advisor. (3) RHS will also be revising the rural area definition in accordance with the 2008 Farm Bill. The current definition states, " For essential community facilities, the terms "rural" and "rural area" will not include any area in any city or town with a population in excess of 20,000 inhabitants, according to the latest decennial Census of the United States." In accordance with the 2008 Farm Bill definition, the proposed new definition will state, " The terms "rural" and "rural area" mean any area other than a city, town, or unincorporated area that has a population of greater than 20,000. 
Agency: Department of Agriculture(USDA)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 7 CFR 1942 
Legal Authority: 5 USC 301; 7 USC 1989; 42 USC 1480 
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  10/00/2011   
NPRM Comment Period End  12/00/2011   
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:
William Downs
Supervisory Architect
Department of Agriculture
Rural Housing Service
STOP 0761, 1400 Independence Avenue SW,
Washington, DC 20250-0761
Phone:202 720-1499
Fax:202 690-4335
Email: william.downs@wdc.usda.gov

 
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