Program Plan
Department of Agriculture - Single Family Direct Loan Program - ARRA Recovery Plan
Updated 05/14/2009
Objectives
Program Purpose
The Single Family Direct Housing program consists of Section 502 Direct Loans. The Direct Loan Program provides 100% financing to customers in rural areas for the purchase of a home. Eligible applicants may utilize the funds to purchase, construct, rehabilitate or refinance a residence located in a rural area. Direct Loans are available for very low-income (below 50% of area median income), and low-income (between 50 & 80% of area median income) households
Public Benefits
Improving the Rural Quality of Life : Communities will benefits from increased property tax revenues that will be generated when homes are purchased or constructed. Neighborhood property owners will also benefit from greater mortgage credit liquidity being available that will have the effect of stabilizing property values due to increased demand for housing in areas of high or vacant housing stock. Mortgage lenders will benefit as they as they seek the reduced risk exposure through providing loans that are backed with a government guarantee.
Jobs Created or Saved: New construction and rehabilitation loans will provide employment opportunities to construction suppliers and contractors. In addition, Realtors, inspectors, appraisers, and title companies will see increased volume of work as a result of the recovery funds.
Measures
The measures have been revised to enrich the performance metrics for Recovery targets. In some instances, targets will not be available until additional baseline data has been collected.
| Measure | Target/Actual |
|---|
| 2009 | 2010 | 2011 | 2012 |
|---|
| 1982/0 | 5945/0 | - | - |
Measure Information
| Frequency : Annual | | Direction : Increasing | | Type : Outcome | | Explanation : Measures the number of new home owners receiving financing through the Direct Loan programs. | | Unit : # of Home Loans |
|
Schedule and Milestones
Planning Phase
March 27, 2009 Draft Detailed Outline of Single Family Housing Program Specific Plan
March 2009 Estimated date to establish the RD-Single Family Housing Recovery Act website
March 20, 2009 SFH initial release of funds to Rural Development State Offices
April 3, 2009 Statement of Work for Inspection and Packaging Services drafted.
April 6, 2009 SFH Direct - Full Year Operating Guidance to State Offices for Administering Funds
April 8, 2009 Draft Single Family Housing Program Specific Plan due
April 15, 2009 Final Single Family Housing Specific Plan Due
April 20, 2009 Begin Final Clearance Process for Single Family Housing Program Plan
May 1, 2009 Submission of Agency and Program Specific Plans to OMB
Procurement Activities
May 1, 2009 Solicitation for SFH Direct Loan Packaging and Inspection Services Procurement (2 separate solicitations)
June 15, 2009 SFHDLD Packaging and Inspection Services Contract Awards
Project Execution
March 20, 2009 Initial release of Section 502 Direct and Guarantee Single Family Housing funds to States.
March 21, 2009 Guidance for processing funding requests to State Office and Agency Approved Lenders for Guaranteed and Direct funding requests
May 2009 Ongoing through September 2010. Performance measure monitoring of effectiveness of the Recovery Act implementation.
Milestones
| Milestone |
Completion Date |
| SFH initial release of funds to Rural Development State Offices |
03/20/2009 |
| Draft Detailed Outline of Single Family Housing Program Specific Plan |
03/27/2009 |
| Submission of Agency and Program Specific Plans to OMB |
05/01/2009 |
Projects and Activities
Single Family Housing Loan funds will be used for the purchase, repair, and construction or refinancing of single family dwellings.
Review Process
Single Family Housing Direct Loan program will monitor Recovery Act funds by producing/reviewing daily obligation reports. These reports will include specific loan information to ensure funds are used for the intended purposes, to identify potential problems and to develop corrective measures if needed.
In addition, the Direct program will use established control measures to monitor Recovery Act funds including loan underwriting reviews, unliquidated obligation reviews, and the State Internal Review (SIR) processes.
Cost and Performance Plan
TRANSPARENCY:
The website www.recovery.gov will be used as the repository for all information related to ARRA funding. Project descriptions, funding amounts, recipient information and other information of public interest will be made available. Outreach efforts, such as workshops, to inform the public of the economic opportunities available for their communities, will be hosted by Rural Development. Information on workshops as well as press events or videos produced for implementation of the Recovery Act will be posted on the Rural Development Recovery Act website. Reporting of all Recovery Act activity will comply with OMB guidance and be made publicly available on www.recovery.gov.
ACCOUNTABILITY:
Program performance measures, including civil rights compliance, will be incorporated into existing manager and employee performance plans. Reports of progress in meeting the performance measures are provided in timely reports that allow for accountability discussions with managers. Monitoring will be done on a frequency that will allow implementation of corrective action as necessary.
Energy Efficiency Spending Plans
The Single Family Housing programs do not finance infrastructure; however, the financing of energy efficient items is a permitted loan purpose.
Program Plan Award Types
No Data Available