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The Agency plans to consolidate and update three regulations governing Community Facilities Loans and Grants programs, 7 CFR part 1942, subparts A and C, and 7 CFR part 3570, subpart B, into a new regulation, 7 CFR part 3570, subpart A. This new regulation will be used to administer the Community Facilities Direct Loan and Grant programs as well as incorporate the Tribal College and Economic Impact Initiative Grant programs. The existing regulations in 7 CFR part 1942, subparts A and C, and 7 CFR part 3570, subpart B, will be removed as obsolete. The final rule includes the following: remove references to the RUS water and waste disposal program, which was moved to 7 CFR part 1780 in 1997, and update scoring priorities to reflect current needs in rural America; incorporate information from staff instructions and guidance that have been renewed and republished for many years; make preapplications optional for small projects ($500,000 or less); clarify and coordinate applicant and project eligibility requirements among the Community Facilities Guarantee, Direct, and Grant regulations; update the regulation to reflect recent legal opinions/determinations; update audit requirements in accordance with the latest OMB directives; and add "Exception Authority” to allow for the granting of exceptions by the RHS Administrator to portions of regulations that are not statutory. The granting of exceptions is allowed in other rural development regulations under well-defined and very controlled circumstances. We will also add language implementing the 2018 Farm Bill to include priority for projects that provide substance abuse prevention, treatment, and recovery services; and to allow as an eligible loan purpose the refinancing of certain rural hospital debt.