Heirs’ Property Relending Program

 

As specified in 7 U.S.C. 1936c(c), HPRP provides loan funds to intermediaries who will re-lend loan funds to individuals and entities with undivided ownership interests in order to resolve ownership and succession issues relating to a farm owned in common by multiple owners. .

Active 10.128 Farm Service Agency, Department of Agriculture E - Direct Loans Not applicable. 2018 Agriculture Improvement Act, Section 5104, Public Law 115-334 (a) Eligible entity types. The types of entities eligible to serve as intermediaries for HPRP are cooperatives, credit unions, and nonprofit organizations. (b) Certification. The intermediary must be certified as a community development financial institution under 12 CFR 1805.201 (or successor regulations) to operate as a lender. (c) Citizenship. The applicant and the member of the intermediary must be U.S. citizens. (d) Experience. The intermediary must have: (1) At least 5 years of experience assisting socially disadvantaged farmers and ranchers (as defined in subsection (a) of section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) or limited resource or new and beginning farmers and ranchers, rural businesses, cooperatives, or credit unions; (2) The requisite experience and capability in making and servicing agricultural and commercial loans that are similar in nature to HPRP. If consultants will be used, the agency will assess the intermediary's experience in choosing and supervising consultants; (3) The legal authority necessary to carry out the proposed loan purposes and to obtain, provide security for, and repay the proposed loan; and (4) Demonstrated ability and willingness to repay the loan based on the intermediary's financial condition, managerial capabilities, and other resources. (a) The eligibility requirements for the ultimate recipient are: (1) Ultimate recipients may be individuals or legal entities, with authority to incur the debt and to resolve ownership and succession of a farm owned by multiple owners; and (2) As a condition of receiving a loan from the intermediary, the ultimate recipient must agree to complete a succession plan. (b) The intermediary will determine the eligibility of the applicant to become the ultimate recipient in accordance with the rules provided in this subpart and in accordance with the intermediary's relending plan as approved by the agency in the HPRP loan agreement. Not applicable. Preapplication coordination is not applicable. This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Processing loan applications: (a) Opening and closing dates for applications from intermediaries will be established and announced by the agency on the agency's website (www.fsa.usda.gov). (b) The agency will review applications from intermediaries for compliance with the provisions of this subpart. (c) Applications meeting the provisions in this subpart will be approved for either the full requested loan amount or a lower amount depending on fund availability. (d) Preference will be given to intermediaries with not less than 10 years' experience serving socially disadvantaged farmers and ranchers that are located in states that have adopted a statute consisting of an enactment or adoption of the Uniform Partition of Heirs Property Act, as approved and recommended for enactment in all States by the National Conference of Commissioners on Uniform State Laws in 2010, that relend to owners of heirs property (as defined by the Uniform Partition of Heirs Property Act). In addition, the agency may give priority to intermediaries having applications from ultimate recipients already in process. The agency may also consider other factors including the size of the farm, the number of heirs, and the type of land. (e) Information supplied by the intermediary in the loan application will need to be updated if the information is more than 90 days old at the time of loan closing. Opening and closing dates for applications from intermediaries will be established and announced by the agency on the agency's website (www.fsa.usda.gov). From 90 to 120 days. Any appealable adverse decision made by the agency may be appealed upon written request of the intermediary as specified in 7 CFR part 11. From 30 to 60 days. (A) The intermediary's loan application will consist of: (1) An application form provided by the agency; (2) A relending plan addressing the items in ? 769.157. (3) Other evidence the agency requires to determine that the intermediary satisfies the eligibility requirements in ? 769.152, and that the intermediary's proposed relending plan is feasible and meets the objectives of HPRP; (4) Documentation of the intermediary's ability to administer the HPRP loan funds in accordance with this part; and (5) The name(s) of attorneys or any third parties involved with the application process. (b) Prior to loan approval and advancing funds, the intermediary must certify that: (1) The intermediary and its officers, or agents are not delinquent on any Federal debt, including, but not limited to, federal income tax obligations, federal loan or loan guarantee, or obligation from another Federal agency. If delinquent, the intermediary must provide in writing the reasons for the delinquency, and the agency will take this into consideration in deciding whether to approve the loan or advance of funds; (2) The intermediary and its officers have not been convicted of a felony criminal violation under Federal law in the 24 months preceding the date of the loan application; (3) The intermediary is in compliance with the restrictions and requirements in 31 U.S.C. 1352, Limitation on use of appropriated funds to influence certain Federal contracting and financial transactions; (4) The intermediary has been informed of the options by the Federal Government to collect delinquent debt; and (5) The intermediary, its officers, or agents are not debarred or suspended from participation in Government contracts or programs. (c) An intermediary that has received one or more HPRP loans may apply for and be considered for subsequent HPRP loans provided: (1) The intermediary is relending all collections from loans made from its revolving fund in excess of what is needed for required debt service, approved administration costs, and a reserve for bad debts; (2) The outstanding loans of the intermediary's HPRP revolving loan fund are performing; and (3) The intermediary is following all regulatory requirements and is complying with the terms and conditions of its HPRP loan agreement(s) and the intermediary's relending plan(s) approved by the agency. (d) The agency may require the intermediary to provide information relating to applications from ultimate recipients the intermediary has in process. Authorized loan purposes: (a) Loans to the intermediary. HPRP loan funds must be used by the intermediary to provide direct loans to eligible ultimate recipients according to the rules provided in this subpart and pursuant to the HPRP loan agreement approved by the agency. (b) Loans to the ultimate recipients. HPRP loan funds: (1) Must be used to assist heirs with undivided ownership interests to resolve ownership and succession on a farm that is owned by multiple owners; (2) Must be sufficient to cover costs and fees associated with development and implementation of the succession plan, including closing costs (such as costs for preparing documents, appraisals, surveys, and title reports) and other associated legal services (such as fees incurred for mediation and other related legal actions); and (3) May be used to purchase and consolidate fractional interests held by other heirs in jointly-owned property, and to purchase rights-of-way, water rights, easements, and other appurtenances that would normally pass with the property and are necessary for the proposed operation of the farm. Not applicable. Not applicable. Not applicable. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Method of awarding/releasing assistance: lump sum Method of awarding/releasing assistance: Lump. None/Not specified. Md Mutaleb
U.S. Department of Agriculture
1400 Independence Avenue SW
Washington, DC 20250 USA
md.mutaleb@usda.gov
Phone: (202) 720-3168 http://www.fsa.usda.gov 12-1140-0-1-351 (Direct Loans) FY 22$10,000,000.00; FY 23 est $20,000,000.00; FY 24 est $20,000,000.00; FY 21$12,000,000.00; FY 20$18,215,000.00; - Not applicable/available. None Not applicable.