(a) For those projects for which Federal funding is sought in excess of $100,000 the applicant shall file SF 424.2, “Application for Federal Assistance (For Construction)” with the appropriate Rural Development office. For those projects for which Federal funding is sought for less than $100,000, the applicant shall file SF 424.2 with the appropriate Rural Development office. A copy should also be filed with the Governor's office of the appropriate State.

(b) The Rural Development office receiving a SF 424.2 shall reply to the applicant with-in 45 calendar days regarding the applicant's eligibility to compete for funding under this program using Form AD-622. (Rural Development District offices will send each preapplication to the Rural Development State Offices for review before replying to the applicant. Rural Development District offices will send a copy of Form AD-622 to the Rural Development State Office at the time the Form AD-622 is sent to the applicant.)

(c) Intergovernmental consultation should be carried out in accordance with 7 CFR part 3015 subpart V, “Intergovernmental Review of Department of Agriculture Programs and Activities”. (See RD Instruction 1970-I, ‘Intergovernmental Review,’ available in any Agency office or on the Agency's Web site.)

(d) Applicants shall file an original and one copy of SF 424.2, with the appropriate Rural Development office. Local governments and councils of local government shall submit applications to the Rural Development District Office and State governments to the Rural Development State Office. Applications shall include:

(1) Evidence of applicant's legal existence and authority to undertake the proposed project;

(2) Evidence of ownership of or lease on a site to be developed or “Options to Purchase Real Property,” Form RD 440-34, (Lease on a site for a public facility will be in accordance with FmHA Instruction 1942-A and lease on a site for housing will be in accordance with 7 CFR part 3550);

(3) Description of project and relationship to approved growth management and housing plan. Applicant must cite pages and section of the approved plan;

(4) A plat of the area including elevations;

(5) Preliminary plans and specifications on proposed development which will contain an estimate of the projected cost of site development prepared by independent qualified appraisers or architects/engineers;

(6) The amount of Federal grant needed;

(7) The amount and source of applicant's financial contribution to the project;

(8) Grants made under this subpart must comply with the environmental review requirements in accordance with 7 CFR part 1970.

(9) An original and one copy of Form RD 400-1 and Form RD 400-4;

(10) Evidence that the land is stable if the land has been previously mined (include relevant data on soil and analysis);

(11) Assurance that the requirements set forth in title 7, subtitle A, part 21 of the Code of Federal Regulations (Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970) have been met.

(12) Specific concurrence of the Governor if the proposed applicant is neither a council of local governments nor a general purpose political subdivision of a State;

(e) District and State Rural Development Offices receiving applications shall:

(1) Determine if the project is in accordance with a Rural Development approved growth management and/or housing plan covering the approved designated area;

(2) Comply with environmental review requirements in accordance with 7 CFR part 1970;

(3) Prepare a Historic Preservation Assessment in accordance with part 1901, subpart F, of this chapter;

(4) Determine site stability if the land has been previously mined; and

(f) District Rural Development Offices receiving applications shall also provide written comments reflecting site development and acquisition grant selection criteria (§1948.86) listed in this subpart.

(g) The Rural Development District Office shall forward the original of the application and accompanying documents including those required in paragraph (e) of this section to the Rural Development State Director within 10 working days of receipt of the application.

(h) Upon receipt of an application, the Rural Development State Office shall:

(1) Review and evaluate the application and accompanying documents;

(2) Determine that the project is a part of and consistent with the State Investment Strategy for Energy Impacted Areas;

(3) Send a copy of the applicant's evidence of legal existence and authority to the USDA Regional OGC for review;

(4) If applicant is local government(s), consult with the Governor on funding recommendation of the project; and

(5) Respond to the applicant within 30 days of the date of receipt of the application.

(i) Upon receipt of an application by the Rural Development State Office, a docket shall be prepared which shall include the following:

(1) Application SF 424.2 and enclosures;

(2) Any comments received in accordance with 7 CFR part 3015 subpart V, “Intergovernmental Review of Department of Agriculture Programs and Activities”. (See RD Instruction 1970-I, ‘Intergovernmental Review,’ available in any Agency office or on the Agency's Web site.)

(3) Evidence of ownership or lease of site to be developed;

(4) Evidence of applicant's legal existence and authority;

(5) OGC legal determination;

(6) Preliminary plans and specifications concerning the proposed development;

(7) Grant agreement and scope of work;

(8) An estimate of projected cost of site development prepared by independent qualified appraisers or engineers/architects;

(9) A topographical map of the area;

(10) Form RD 1940-1;

(11) Form RD 400-1;

(12) Form RD 400-4;

(13) Environmental review documentation in accordance with 7 CFR part 1970.

(14) Historic Preservation Assessment;

(15) A copy of the State Investment for Energy Areas; and

(16) District, where appropriate, and State Rural Development written comments, assessments and analysis of the proposed project in accordance with the grant selection criteria.

[44 FR 35984, June 19, 1979, as amended at 46 FR 61991, Dec. 21, 1981; 48 FR 29121, June 24, 1983; 49 FR 3764, Jan. 30, 1984; 55 FR 13503, 13504, Apr. 11, 1990; 67 FR 78329, Dec. 24, 2002; 76 FR 80731, Dec. 27, 2011; 81 FR 11032, Mar. 2, 2016]