# Strategic economic and community development.
**AGENCY:**
Rural Business-Cooperative Service, Rural Housing Service, Rural Utilities Service, Farm Service Agency, USDA.
**ACTION:**
Final rule.
**SUMMARY:**
Rural Development (RD) is correcting an oversight of omitting cross-reference to the Strategic Economic and Community Development priority in the underlying programs when it published the rule for the priority.
**DATES:**
This rule is effective March 1, 2016.
**FOR FURTHER INFORMATION CONTACT:**
Farah Ahmad, Rural Business-Cooperative Service, U.S. Department of Agriculture, Stop 3254, 1400 Independence Avenue SW., Washington, DC 20250-0783, Telephone: 202-245-1169. Email: *[email protected].*
**SUPPLEMENTARY INFORMATION:**
Section 6025 of the Agricultural Act of 2014 (2014 Farm Bill) provides the Secretary of Agriculture the authority to give priority to projects that support strategic economic development or community development plans. Section 6025 enables the Secretary to reserve up to 10 percent of program funds from certain Rural Development programs, as identified in the section.
On May 20, 2015 (80 FR 28807), the Agency implemented this priority through the establishment of a new regulation, which is found in 7 CFR part 1980, subpart K of the Code of Federal Regulations. The new regulation applies to the following specific programs, which are referred to as the “underlying programs,” within Rural Development:
• Community Facility Loans
• Fire and Rescue and Other Small Community Facilities Projects
• Community Facilities Grant Program
• Community Programs Guaranteed Loans
• Water and Waste Disposal Programs Guaranteed Loans
• Water and Waste Loans and Grants
• Business and Industry Guaranteed Loanmaking and Servicing
• Rural Business Development Grants
When the Agency published the new regulation, we overlooked inserting cross-references to the new regulation in the regulations for the underlying programs. This action corrects that oversight. Specifically, the Agency is adding to each of the underlying programs' regulations language that alerts potential applicants to the new strategic and economic development regulation, which is found in 7 CFR part 1980, subpart K of chapter XVIII of the Code of Federal Regulations.
**List of Subjects**
Loan programs—housing and community development, Rural areas, Waste treatment and disposal, Water supply.
Community development, Community facilities, Grant programs—housing and community development, Loan programs—housing and community development, Reporting and recordkeeping requirements, Rural areas, Waste treatment and disposal, Water supply, Watersheds.
Business and industry, Community facilities, Fire prevention, Grant programs—business, Grant programs—housing and community development, Grant programs—Indians, Indians, Loan programs—agriculture, Loan programs—housing and community development, Loan programs—Indians, Loan programs—natural resources, Reporting and recordkeeping requirements, Rural areas, Waste treatment and disposal, Water supply, Watersheds.
Administrative practice and procedure, Fair housing, Grant programs—housing and community development, Housing, Low and moderate income housing, Reporting and recordkeeping requirements, Rural areas.
Loan programs—agriculture.
Loan programs—business, Reporting and recordkeeping requirements, Rural areas.
Loan programs—Business and industry, Economic development, Energy, Energy efficiency improvements, Feasibility studies, Grant programs, Guaranteed loan programs, Renewable energy systems, Rural areas.
For the reasons discussed above, chapters XVII, XVIII, XXXV, and XLII of title 7, of the Code of Federal Regulations are amended as follows:
**7 CFR Part 1779**
**Chapter XVII—Rural Utilities Service, Department of Agriculture**
**PART 1779—WATER AND WASTE DISPOSAL PROGRAMS GUARANTEED LOANS**
1. The authority citation for part 1779 continues to read as follows:
**Authority:**
5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.
**7 CFR Part 1779**
2. Add § 1779.51 to read as follows:
§ 1779.51
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 1780**
**PART 1780—WATER AND WASTE LOANS AND GRANTS**
3. The authority citation for part 1780 continues to read as follows:
**Authority:**
5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.
**7 CFR Part 1780**
**Subpart A—General Policies and Requirements**
4. Add § 1780.34 to read as follows:
§ 1780.34
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 1942**
**Chapter XVIII—Rural Housing Service, Rural Business-Cooperative Service, Rural Utilities Service, and Farm Service Agency, Department of Agriculture**
**PART 1942—ASSOCIATIONS**
5. The authority citation for part 1942 continues to read as follows:
**Authority:**
5 U.S.C. 301; 7 U.S.C. 1989.
**7 CFR Part 1942**
**Subpart A—Community Facility Loan**
6. Add § 1942.10 to read as follows:
§ 1942.10
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 1942**
**Subpart C—Fire and Rescue and Other Small Community Facilities Projects**
7. Add § 1942.110 to read as follows:
§ 1942.110
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 3570**
**Chapter XXXV—Rural Housing Service, Department of Agriculture**
**PART 3570—COMMUNITY PROGRAMS**
8. The authority citation for part 3570 continues to read as follows:
**Authority:**
5 U.S.C. 301; 7 U.S.C. 1989.
**7 CFR Part 3570**
9. Add § 3570.71 to read as follows:
§ 3570.71
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 3575**
**PART 3575—GENERAL**
10. The authority citation for part 3575 continues to read as follows:
**Authority:**
5 U.S.C. 301, 7 U.S.C. 1989.
**Subpart A—Community Programs Guaranteed Loans**
11. Add § 3575.51 to read as follows:
§ 3575.51
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 4279**
**Chapter XLII—Rural Business-Cooperative Service and Rural Utilities Service, Department of Agriculture**
**PART 4279—GUARANTEED LOANMAKING**
12. The authority citation for part 4279 continues to read as follows:
**Authority:**
5 U.S.C. 301; and 7 U.S.C. 1989.
**7 CFR Part 4279**
**Subpart B—Business and Industry Loans**
13. Add § 4279.162 to read as follows:
§ 4279.162
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
**7 CFR Part 4280**
**PART 4280—LOANS AND GRANTS**
14. The authority citation for part 4280 continues to read as follows:
**Authority:**
5 U.S.C. 301; 7 U.S.C. 904c and 7 U.S.C. 1932(c).
**7 CFR Part 4280**
**Subpart E—Rural Business Development Grants**
15. Add § 4280.428 to read as follows:
§ 4280.428
Applicants with projects that support the implementation of strategic economic development and community development plans are encouraged to review and consider 7 CFR part 1980, subpart K, which contains provisions for providing priority to projects that support the implementation of strategic economic development and community development plans on a Multi-jurisdictional basis.
Dated: February 19, 2016.
Lisa Mensah,
Under Secretary, Rural Development.
Dated: February 19, 2016.
Michael Scuse,
Under Secretary, Farm and Foreign Agricultural Services.