NAHMA USDA Update: Section 538 FR Notice on application submissions process ; Updated audit requirements for Non-Profit MFH borrowersDecember 23, 2024 Dear NAHMA Members – Please find the following two recent RD-RHS updates covering the Section 538 program’s application submissions process and updated audit requirements for Non-Profit MFH borrowers:
Washington D.C., December 20, 2024 - The Rural Housing Service (RHS) published a notice in Federal Register Vol. 89, No. 245, announcing updates in the application submissions process for the Section 538 Guaranteed Rural Rental Housing Program (GRHHP). This Notice replaces the previous Notice that published in the Federal Register on April 28, 2023 (Vol. 88, No. 82) and the correction Notice that published on July 19, 2023 (Vol. 88, No. 137). Many of the updates and additions include, but are not limited to, the Agency’s response to regulatory requirements related to priority point scoring, clarification on Do Not Pay reporting requirements, and SAM’s registration requirements. The new notice also addressed the process of submitting complete applications both for projects and lender applications, requiring applicants to disclose if the property is associated with commercial space and to include the proposed closing date of the Section 538 GRRHP loan. The Agency is no longer requiring applicants to submit a NOSA Response prior to submission of an application. Therefore, there will no longer be a “two-part” submission process. Applicants will submit a complete application to the Agency in one step. The Agency updated and renamed the NOSA Response Form. The form will now be referred to as the Section 538 GRRHP Response Template. The template reflects the changes to the priority point scoring. The updated fillable Template is available on the Rural Development Multifamily Housing Loan Guarantees website. Click on the “To Apply” tab to access the updated template. Submitting the template is not mandatory, however, applicants are strongly encouraged to use the template and submit it to the Agency along with the other documents that are required to be submitted as part of the complete application package. If you have questions, please contact Tammy Daniels, Program Support Branch - Production and Preservation Division at [email protected].2. Update to Federal Financial Assistance GuidanceWashington D.C., December 19, 2024 - The Rural Housing Service (RHS) Office of the Multifamily Housing (MFH) is announcing updated audit requirements for Non-Profit MFH borrowers. The 2024 2 CFR 200 Updates to the Rural Housing Service Multi-Family and Community Facilities Regulations Final Rule, which published on Friday, December 6, 2024, increases the audit threshold for non-profit MFH borrowers from $750,000 to $1,000,000 in Federal financial assistance. These updates align MFH with the federal government-wide revisions to 2 CFR part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which became effective on October 1, 2024. The audit threshold requirement for MFH for-profit borrowers remains unchanged at $500,000. For more information, please refer to refer to 7 CFR 3560.308 Annual financial reports. |