The Rural Housing Service (RHS) proposes to amend the regulations utilized to service the Community Facilities Guaranteed Loan Program by amending the regulation in two separate sections, in order to clarify the types of projects that are eligible for a Community Facilities Guaranteed Loan. The intended effect of this action is to strengthen the Community Facilities Guaranteed Loan Program by limiting the risk to the guaranteed loan portfolio. RHS is seeking to prohibit the financing of facilities in which the operation of such facilities have not been supported by the community and have resulted in significant default and loan losses to the agency.
Agency Contact: Kendra Doedderlein, Community Programs Senior Loan Specialist, Rural Housing Service, U.S. Department of Agriculture, STOP 0787, 1400 Independence Ave. SW., Washington, DC 20250-0787, Telephone: (202) 720-1503.
This is a proposed regulation. Comments were due on August 27, 2012.