Justification for Change

Justification for Change

ICR 0575-0172

Direct Single Family Housing Loan and Grant Programs,

7 CFR 3550 - HB-1-3550, and HB-2-3550

This collection of information is associated with a proposed rule (RIN 0575-AD32) that published on August 16, 2023 (88 FR 55601) in the Federal Register to amend the current regulations for the Single-Family Housing Direct and Guaranteed Programs found in 7 CFR part 3550 and 3555, respectfully. In this submission, Form RD 1944-5 was removed from the current information collection. There is a burden reduction that is attributed to removing the requirement for submission of Form RD 1944-5 and associated financial documents for manufactured dealer-contractors to receive prior approval in order to provide manufactured sales, service and site development services to 502 direct loan applicants.

Rural Development (RD) requests a change to the OMB No. 0575-0172, “Direct Single Family Housing Loan and Grant Programs, 7 CFR 3550 - HB-1-3550, and HB-2-3550” information collection package. RD is requesting to remove Form 1944-5, “Rural Development Housing Dealer Contractor Application” from this information collection package. Elimination of this form will reduce the Agency’s recordkeeping requirements and will reduce applicant burden. Removal of this form alleviates Agency staff from review and approval of applications and the maintenance of an internal list that must be updated every two years based on the activity of the “approved” dealer-contractors, thus providing the Agency with needed flexibility. The form removal will also prevent delays in the processing of manufactured housing purchase requests by eliminating the need for the dealer to apply and be approved prior to proceeding, which can be time-consuming due to the review of financial and credit information for the dealer. The dealer will still be required to provide all site services and agree to construction and development requirements in 7 CFR 3550.73.