Please click on the Forms and Resources tab for application information.
What does this program do?
This program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area, and does not include private, commercial or business undertakings.
Who may apply for this program?
Eligible borrowers include:
- Public bodies
- Community-based non-profit corporations
- Federally-recognized Tribes
What is an eligible area?
Rural areas including cities, villages, townships and towns including Federally Recognized Tribal Lands with no more than 20,000 residents according to the latest U.S. Census Data are eligible for this program.
How may funds be used?
Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment and pay related project expenses.
Examples of essential community facilities include:
- Health care facilities such as hospitals, medical clinics, dental clinics, nursing homes or assisted living facilities
- Public facilities such as town halls, courthouses, airport hangars or street improvements
- Community support services such as child care centers, community centers, fairgrounds or transitional housing
- Public safety services such as fire departments, police stations, prisons, police vehicles, fire trucks, public works vehicles or equipment
- Educational services such as museums, libraries or private schools
- Utility services such as telemedicine or distance learning equipment
- Local food systems such as community gardens, food pantries, community kitchens, food banks, food hubs or greenhouses
What kinds of funding are available?
- Low interest direct loans
- A combination of the two above, as well as our loan guarantee program. These may be combined with commercial financing to finance one project if all eligibility and feasibility requirements are met.
What are the funding priorities?
- Priority point system based on population, median household income
- Small communities with a population of 5,500 or less
- Low-income communities having a median household income below 80% of the state nonmetropolitan median household income.
What are the terms?
Funding is provided through a competitive process.
- Loan repayment terms may not be longer than the useful life of the facility, state statutes, the applicants authority, or a maximum of 40 years, whichever is less
- Interest rates are set by Rural Development, contact us for details and current rates
- Once the loan is approved, the interest rate is fixed for the entire term of the loan, and is determined by the median household income of the service area and population of the community
- There are no pre-payment penalties
- Contact us for details and current interest rates applicable for your project
- Applicant must be eligible for grant assistance, which is provided on a graduated scale with smaller communities with the lowest median household income being eligible for projects with a higher proportion of grant funds. Grant assistance is limited to the following percentages of eligible project costs:Maximum of 75 percent when the proposed project is:
- Located in a rural community having a population of 5,000 or fewer; and
- The median household income of the proposed service area is below the higher of the poverty line or 60 percent of the State nonmetropolitan median household income.
- Maximum of 55 percent when the proposed project is:
- Located in a rural community having a population of 12,000 or fewer; and
- The median household income of the proposed service area is below the higher of the poverty line or 70 percent of the State nonmetropolitan median household income.
- Maximum of 35 percent when the proposed project is:
- Located in a rural community having a population of 20,000 or fewer; and
- The median household income of the proposed service area is below the higher of the poverty line or 80 percent of the State nonmetropolitan median household income.
- Maximum of 15 percent when the proposed project is:
- Located in a rural community having a population of 20,000 or fewer; and
- The median household income of the proposed service area is below the higher of the poverty line or 90 percent of the State nonmetropolitan median household income. The proposed project must meet both percentage criteria. Grants are further limited.
- Grant funds must be available
Are there additional requirements?
- Applicants must have legal authority to borrow money, obtain security, repay loans, construct, operate, and maintain the proposed facilities
- Applicants must be unable to finance the project from their own resources and/or through commercial credit at reasonable rates and terms
- Facilities must serve rural area where they are/will be located
- Project must demonstrate substantial community support
- Environmental review must be completed/acceptable
How do we get started?
- Contact your local office to discuss your specific project
- Applications for this program are accepted year round
- Program resources are available online (includes forms needed, guidance, certifications)
- Request a Unique Entity ID number if your organization doesn’t already have one. It should not take more than a few business days to get your number.
- Register your organization with the System for Award Management (SAM) if you aren’t already registered. The registration is free, but you need to complete several steps.
Who can answer questions?
Contact your local RD office.
What governs this program?
NOTE: Because citations and other information may be subject to change please always consult the program Instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.
Community Facilities Direct Loan and Grant Program
To begin the process of applying for a Community Facilities loan or grant, complete and submit the following documents to your Local Rural Development Office.
Pre-application for Federal Assistance, SF 424
- Applicant Narrative- IA Guide A-2
- Balance Sheets and Income Statements or Audits for past 5 years (Forms RD 442-2 and RD 442-3 or similar format may be used)
- Current Fiscal Year's Operating Budget (Form RD 442-2) or similar format may be used)
- Evidence of Community Support (Not-for-Profit Organizations Only) - IA Sample A-3
- Articles of Incorporation and By-laws (Not-for-Profit Organizations Only)
Upon receipt of a complete pre-application package, your local Rural Development Office will determine applicant and project eligibility, the level of environmental information needed, and if any additional financial information is needed. You will be notified of the agency's decision within 45 days and given further instructions on needed documents.
Please be advised that you are required to hold a public meeting prior to loan or grant approval. Instructions for meeting the public information requirements are found below.
All Projects funded must follow federal free and open competition guidelines. This involves following Rural Development and state bidding requirements. Your local Rural Development Office will help you determine the specific procurement needs of your project.
At a minimum, you will also need to provide the following documents to complete an application:
- Resolution of Governing Board Authorizing Application IA Sample A-1
- Published Notice of Public Meeting/Minutes of Meeting IA Sample A-2
- Preliminary Architecture/Engineering Report and cost estimate
- Equal Opportunity Agreement (construction projects only), Form RD 400-1
- Assurance Agreement, Form RD 400-4
- Certification for Contracts, Grants, and Loans, RD 1940-Q, Exhibit A
- Applicant Certification Federal Collection Policies, Form RD 1910-11 (Loan only)
- Operating Budget, Form RD 442-7 (for proposed facility)
Other Documents that May be Needed
- Architectural Services Agreement
- Financial Feasibility Analysis or Report (Loan only)
- Interim Guidance for Feasibility Analysis of Health Care Facilities (Loan only)
- Strategic Economic and Community Development Priority (optional)
NOTE: If state specific forms are not shown above, please refer to the application materials listed below to start the process of applying. Please ensure that your state is selected in the dropdown menu above to find the State Office contact information for this program and speak to a Community Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in the process.
Application Checklist for use with this program:
Current interest rates for the 4th Quarter of Fiscal Year 2023, effective July 1, 2022 – September 30, 2023
For this quarter, all loans may be obligated at the lower market rate.
Community Facilities Architect Information
- Instructions to Engineer/Architect - IA Sample A-5 (8-2015)
- Open and Free Competition (5-17-12)
- Preliminary Architectural Feasibility Report - RD Guide 6 (1-15-79)
- RD Attachment to AIA B101 - 2017 Architect Agreement - RD Guide 27, Attachment 1 (02-05-18)
- Certification Regarding Debarment - Form AD-1048 (1-92) (contracts over $25,000)
- Disclosure of Lobbying Activities - SF-LLL (8-21-91) (contracts over $100,000)
- Authorization to take bids - IA Guide D-6 CF (7-2015)
- Rights-of-Way Requirements - IA Guide C-1 CF (9-2015)
- Preconstruction Conference - IA Guide D-5 (12-2017)
- Architects Construction Progress Report - IA Guide E-1 (9-2015)
- Architect Certification - IA Guide D-4 (11-2015)
Construction Management Guidelines
- Construction Management Advisor (CMa) (10-2017)
- Construction Management Constructor (CMc) (2-2018)
Short Form Contract Documents
Public Body Contracts
- RD Short Form - IA Guide D-1 PB (5-2018)
- RD Short Form - IA Guide D-1 NP (5-2018)
AIA - Contract Document Attachments
All RD documents listed below combined into one document
- Index, Contract Documents, Community Facility Projects - IA Guide D-3 (2-2018)
- Project Sign - IA Sample D-4 (4-2018)
- Project Sign CDBG - IA Sample D-5 (4-2018)
- Certificate of Owner's Attorney - IA Guide D-7 (8-2015)
- Advertisement for Bids - (Non-profit) - IA Sample D-1 (7-2015)
- Competitive Negotiation Selection Form - (Non-profit) - IA Sample D-3 (8-2015)
- Statement of Substantial Completion - IA Guide E-2 (8-2015)
- Statement of Final Completion - IA Guide E-3 (7-2015)
- Supplemental Instructions to Bidders - IA Guide D-2 Non-Profit (8-2015) or IA Guide D-2 Public Bodies (8-2015)
- Compliance Statement - RD 400-6 (Rev. 4-00)
- Contract Change Order - RD 1924-7 (Rev. 2-97)
- Partial Payment Estimate - RD 1924-18 (Rev. 6-97)
- Certification Regarding Debarment - AD 1048 (1-92)
- Bid Form - RD Guide 19-attachment 3 (1-15-79)
- Performance Bond - RD Guide 19-attachment 5 (5-23-79)
- Payment Bond - RD Guide 19-attachment 6 (1-15-79)
- Notice of Award - RD Guide 19-attachment 7(1-15-79)
- Notice to Proceed - RD Guide 19-attachment 8 (1-28-81)
- Attachment to AIA - A201 - 2017, General Conditions - RD Guide 27-attachment 4 (2-5-18)
- Certification for Contracts, Grants and Loans - 1940 Q, Exh A-1 (4-7-97)
- Bid Bond - RD Guide 19-attachment 4 (1-15-79)
- RD Agreement Attachment - RD Guide 27-attachment 3 (2-5-18)
Rural Development (RD) Programs, such as Community Facilities (CF) and Multi-Family Housing (MFH), involve the construction of new buildings or renovation of existing facilities. The development of these facilities involves the need for architectural services for the preparation of plans, specifications, public bidding, contracting, construction, and construction monitoring.
Applicants, at the earliest possible time, should provide a Preliminary Architectural Feasibility Report, including the Cost Estimate, for the review by the RD Area Loan Specialist and RD State Architect. These two documents are needed to determine the project's feasibility. RD's State Architect will evaluate and provide architectural/construction guidance to the Applicants and their Architects, for RD financed architectural projects, in the following areas:
Initial site visit & evaluation of the proposed project
Preliminary Architectural Feasibilty Report
Agency concurrence of Owner/Architect Agreements
Agency acceptance of Plans & Specifications
Agency concurrence of Construction Contract documents
Construction & construction monitoring
Individual states may have particular requirements based on state and local regulations. Please select your state in the dropdown menu above to find your local contact for this program.
Project emissions, including those created by potential secondary beneficiaries, shall be examined for conformance to the Clean Air Act and the Environmental Protection Agency's National Primary and Secondary Ambient Air Quality Standards.
Iowa has two "non-attainment" areas. EPA lists all the nonattainment areas
For questions contact Air Quality Helpline with Iowa DNR: (877) AIR-IOWA (247-4692).
If the proposal will emit large quantities of air pollutants, contact your Rural Development loan specialist and provide the information from Iowa DNR's Air Quality Section. Specialists will review the information to ascertain the level of environmental review required.
To determine emissions from other facilities in the project area check the EPA website.
1. Click on "Air data", in the Facility Characteristics check the "other minor" box.
2. In the Geographic Location boxes click on region 7, State IOWA, and fill in county name, and search. Print out page for file.
Approved Coastal Zone Management Area
Iowa does not have any coastal zone management areas.
Coastal Barrier included in Coastal Barrier Resources System Natural Landmark
Iowa does not have any coastal barrier areas.
National Park Service website. Under “Find a Park,” click on Iowa to locate national monuments, national historic sites, and historic trails.
Place printout from the website in the file.
Prime Forest Lands
There are no national prime forest lands in Iowa.
For State Forests, check the DNR website.
Place a printout from the website in the file.
Iowa does not have any prime range land areas.
Sole Source Aquifer Recharge Area
Iowa does not have any designated sole source aquifers as referenced at the EPA website
Wild or Scenic Rivers
Iowa does not have any Wild and Scenic River as defined under the Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271) as referenced at the National Park Service website www.rivers.gov.
The State of Iowa and the Nationwide Rivers Inventory have designated several areas as protected waterways.
Wilderness (designated or proposed under the Wilderness Act)
Iowa has no national wilderness areas.
You may access information national wilderness areas and related state areas at the following sites:
The Forest Service, Bureau of Land Management, Fish & Wildlife Service, and National Park Service are charged with stewardship of Wilderness Area lands while providing for appropriate human use and enjoyment. To find out more about these special places, see the site above, which is jointly managed by the University of Montana and the four federal agencies that manage wilderness areas. This is an interactive site where you may type in an address to determine if there is a wilderness area within the area of a proposed project.
• In the left column select “Maps, Data and Images” / select Maps / Under “Online Maps” in the first paragraph, select “GIS Maps” / top header of the website, Choose one of two options for your search.
• Zoom by Typing or Select a Wilderness.
• Find a Place / City / Road.
• Select “Go” which takes you to the area of interest – Along the bottom of the page is the color codes for “Wilderness Managed By ……………”
• Gear symbol in the top right hand corner allows you to save and / or print the map as a source document for the environmental report.
There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.
Community Programs Director in Iowa
Area Office Contacts
Area 1 - Iowa Falls Area Office
840 Brooks Road
Iowa Falls, IA 50126
Phone: 641-648-5181 Ext. 4 Fax: 866-255-6573
Counties Served: Butler, Cerro Gordo, Floyd, Franklin, Grundy, Hardin, Marshall, Mitchell, Tama and Worth
Area 2 - Waverly Area Office
1510 3rd Street, SW
Waverly, IA 50677
Phone: 319-352-1715 Ext. 4 Fax: 866-255-6573
Counties Served: Allamakee, Black Hawk, Bremer, Buchanan, Chickasaw, Clayton, Delaware, Fayette, Howard, and Winneshiek
Area 3 - Tipton Area Office
127 West South Street
Tipton, IA 52772
Phone: 563-886-6006 Ext. 4 Fax: 866-255-6573
Counties Served: Benton, Cedar, Clinton, Dubuque, Iowa, Jackson, Johnson, Jones, Linn, and Scott
Area 4 - Mt. Pleasant Area Office
709 S. Iris Street, Suite 103
Mount Pleasant, IA 52641
Phone: 319-986-5800 Ext. 4 Fax: 855-251-2237
Counties Served: Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Muscatine, Van Buren, and Washington
Area 5 - Albia Area Office
1709 South "B" Street
Albia, IA 52531
Phone: 641-932-3031 Ext. 4 Fax: 855-251-2237
Counties Served: Appanoose, Davis, Jasper, Lucas, Mahaska, Marion, Monroe, Poweshiek, Wapello, and Wayne
Area 6 - Indianola Area Office
909 East 2nd Avenue, Suite C
Indianola, IA 50125
Phone: 515-961-5365 Ext. 4 Fax: 855-251-2238
Counties Served: Adair, Clarke, Dallas, Decatur, Guthrie, Madison, Polk, Ringgold, Union, and Warren
Area 7 - Atlantic Area Office
511 West 7th Street
Atlantic, IA 50022
Phone: 712-243-2107 Ext. 4 Fax: 855-251-2238
Counties Served: Adams, Audubon, Cass, Fremont, Harrison, Mills, Montgomery, Page, Pottawattamie, Shelby, and Taylor
Area 8 - Le Mars Area Office
1100 12th Street SW, Suite C
Le Mars, IA 51031
Phone: 712-546-5149 Ext. 4 Fax: 855-251-2245
Counties Served: Cherokee, Crawford, Ida, Lyon, Monona, O'Brien, Osceola, Plymouth, Sioux, and Woodbury
Area 9 - Storm Lake Area Office
1619 North Lake Avenue
Storm Lake, IA 50588
Phone: 712-732-1851 Ext. 4 Fax: 855-251-2245
Counties Served: Buena Vista, Calhoun, Carroll, Clay, Dickinson, Emmet, Greene, Palo Alto, Pocahontas, and Sac
Area 10 - Humboldt Area Office
1301 6th Avenue North, Suite 1
Humboldt, IA 50548
Phone: 515-332-4411 Ext. 4 Fax: 855-251-2245
Counties Served: Boone, Hamilton, Hancock, Humboldt, Kossuth, Story, Webster, Winnebago, and Wright
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