1940.563—Section 502 non-subsidized guaranteed Rural Housing (RH) loans.
(b) Basic formula criteria, data source and weight.
See § 1940.552 (b) of this subpart. The criteria used in the basic formula are:
(3)
State's percentage of the national number of rural households between 80 and 100 percent of the area median income, and
(4)
State's percentage of the national number of rural renter households paying more than 35 percent of income for rent.
Data source for each of these criteria is based on the latest census data available. Each criterion is assigned a specific weight according to its relevance in determining need. The percentage representing each criterion is multiplied by the weight factor and summed to arrive at a basic State factor (SF) as follows:
SF = (criterion 1 × weight of 30%) (criterion 2 × weight of 10%) (criterion 3 × weight of 30%) (criterion 4 × weight of 30%)
(d) Transition formula.
See § 1940.552(d) of this subpart. The percentage range used for Section 502 guaranteed RH loans is plus or minus 15.
(e) Base allocation.
See § 1940.552(e) of this subpart. Jurisdictions receiving administrative allocations do not receive base allocations.
(f) Administrative allocations.
See § 1940.552(f) of this subpart. Jurisdictions receiving formula allocations do not receive administrative allocations.
(1)
Mid-year: If used in a particular fiscal year, available funds unobligated as of the pooling date are pooled and redistributed based on the formula used to allocate funds initially.
(2)
Year-end: Pooled funds are placed in a National Office reserve and are available as determined administratively.
(j) Suballocation by the State Director.
See § 1940.552(j) of this subpart. Annually, the Administrator will advise State Director's whether or not suballocation within the State Office jurisdiction will be required for the guaranteed Housing program.