installation or repair of, or addition to, heating and electric systems, farmstead wells and water systems, sewage disposal systems, walks, steps, and landscaping.

(c) "Land Development" means items such as terracing, clearing, leveling, fencing, drainage and irrigation systems, ponds, forestation, permanent pasture, perennial hay crops, and basic soil amendments.

[21 F. R. 3855, June 6, 1956, as amended and redesignated at 21 F. R. 9239, 9241, Nov. 28, 1956]

§ 304.22 Policies.

The following policies will be observed in planning farm development:

(a) Methods of performing farm development. Planned farm development will be performed by the contract method, the borrower method, or a combination of both the contract and the borrower methods.

(1) Contract method. Items of farm development requiring considerable skill or special equipment, such as new dwellings, barns, plumbing, heating and electrical work, land leveling, well drilling, irrigation and drainage installations, should be performed by the contract method whenever possible. All contract work should be performed by a person, firm, or company qualified to provide the services required under the terms of the contract.

(2) Borrower method. Items of farm development may be performed by or under the direction of the borrower only when he possesses the necessary skill, desire, technical knowledge, and managerial ability to complete the work satisfactorily, and when such work will not interfere seriously with his farming operations.

(b) Minimum standards. All planned construction will be consistent with the minimum construction standards as set forth in Farmers Home Administration regulations governing this subject. All planned land development will be consistent with the recommendations of the State Agricultural Extension Service and the Soil Conservation Service.

(c) Extent of farm development. When planning farm development in connection with a Farm Ownership loan, it will be the policy to provide for construction and land development necessary to put the farm in livable and operable condition at the outset, consistent with the planned farm and home operations. For a Farm Housing or Soil

and Water Conservation loan, the improvements will be planned to the extent agreed upon between the applicant and the County Supervisor.

(d) Excessive buildings. Dwellings or other farm buildings which are considered to be in excess of the needs of the farm, or would be significantly more expensive than similar buildings in the area, will not be improved or constructed with loan funds.

(e) [Reserved]

(f) Completion of farm development. All farm development will be scheduled for completion as quickly as practicable and no later than 15 months from the date of loan closing, except that an item of land development, or a portion thereof, may be scheduled for completion at a date later than the 15-month maximum limit, only when completion of the planned land development within 15 months is contrary to proven practices recommended by the State Agricultural Extension Service or the Soil Conservation Service.

(g) Providing funds. The total cash cost of all planned farm development will be shown on Form FHA-643, “Farm Development Plan." Funds will be provided in the loan, from cash on hand, Agricultural Conservation Program payments to be received, or from the sale of property in accordance with § 304.24. Income to be earned will not be considered for financing items of farm development planned on Form FHA-643.

(1) Deferred advances (direct Farm Ownership loans). In justifiable cases, a deferred advance may be provided for an item of land development, or a portion thereof, which is planned for completion at a date later than the 15-month maximum limit in accordance with paragraph (f) of this section.

(2) Multiple advances (Soil and Water Conservation loans). Provisions may be made for more than one advance of Soil and Water Conservation loan funds in accordance with applicable Farmers Home Administration regulations governing multiple advances.

[21 F. R. 3855, June 6, 1956, as amended and redesignated at 21 F. R. 9239, 9241, Nov. 28, 1956]

that the farm development is properly planned.

(a) Responsibilities of the applicant. (1) When technical services are required, the applicant will arrange for obtaining these services from qualified technicians and tradesmen. He will be responsible for furnishing the County Supervisor with sufficient information to describe fully the planned improvements and the manner in which they will be accomplished.

(2) When construction is to be performed, the technical information will include such items as building plans, construction details, specifications, material lists, cost estimates, and other required data.

(3) When land development is to be performed, the technical information will include estimated costs and quantities, construction details, specifications, plans, and material and equipment lists.

(i) When land development consists of, or includes, the conservation and use of water for irrigation or domestic purposes, the information submitted to the County Supervisor will include a statement as to the source of the water supply, right to the use of the water, and the adequacy and quality of the supply. In States which do not have laws governing the use of water for domestic or irrigation purposes (Riparian Doctrine States), the applicant will be required to furnish evidence to meet the requirements of Farmers Home Administration regulations covering Soil and Water Conservation loan policies regarding Compliance with Special Laws and Regulations.

(ii) When the loan includes funds for land leveling, irrigation, or drainage, a map of that portion of the farm to be improved will be prepared, showing the existing conditions with respect to topography, elevations, soil types, and natural drainage, together with the proposed land development. When land leveling is to be performed, information regarding the depth of top soil, depth to hardpan, rock or gravel, and soil conditions requiring special treatment will shown on the map or on an overlay map. When an irrigation system is to be installed, the location of the water supply, permanent ditches and pipelines, and the areas to be irrigated will be shown on the map. When drainage is involved, drainage installations will be shown on the map, together with fields or areas to be drained.

be

(4) Whenever possible, the applicant will pay with personal funds any charges made for technical services in connection with his proposed farm development. If this cannot be done, the cost of such services may be included in the loan. [21 F. R. 3855, June 6, 1956. Redesignated at 21 F. R. 9239, Nov. 28, 1956]

§ 304.24 Salvage or disposition of surplus structures, and use or sale of timber, sand, gravel, and stone.

(a) In planning farm development, the applicant and the County Supervisor, to the extent practicable, should use salvage from old buildings, and timber, sand, gravel, and stone from the farm.

(b) When the farm has surplus buildings, timber, sand, gravel, or stone for immediate sale that is not to be used in performing farm development and that can be sold, the applicant may sell it and use the net proceeds in paying the costs of performing planned farm development. Except in the case of a Soil and Water Conservation loan secured only by chattels, the following will apply:

(1) When it is agreed that the applicant will dispose of materials, such agreement will be recorded in the narrative of Form FHA-643, which as a minimum will:

(i) Identify the property to be sold; specify the approximate date of the sale, method of marketing, and minimum acceptable price; and indicate the estimated net proceeds.

(ii) Provide that the borrower will deposit the net proceeds in the supervised bank account, use them for planned farm development, and apply any excess net proceeds as an extra payment on the loan.

(iii) Obligate the Government to release the identified property from the mortgage without additional consideration.

(2) The agreement will be considered by the Government as modifying the mortgage contract to the extent of authorizing and requiring the Government to release the identified property subject to the conditions stated in the agreement without payment of other considerations at the time of release, regardless of whether or not the mortgage specifically refers to Form FHA-643, or the agreement to release.

(3) Net proceeds derived from the sale of property so released will be used to accomplish only such items of farm de

velopment as properly can be accomplished with loan funds.

(4) In case the loan will be secured by a junior lien, before the loan is approved, any prior mortgagee must give written consent to the proposed sale and the use of the net proceeds.

[21 F. R. 3856, June 6, 1956. Redesignated at 21 F. R. 9239, Nov. 28, 1956]

Subpart C-Performing Farm Devel

opment for Farm Ownership, Farm Housing, and Individual Soil and Water Conservation Loans

AUTHORITY: §§ 304.41 to 304.46 issued under R. S. 161, secs. 41, 6, 50 Stat. 528, as amended, 870, sec. 510, 63 Stat. 437, sec. 4, 64 Stat. 100, sec. 10, 68 Stat. 735; 5 U. S. C. 22, 7 U. S. C. 1015, 16 U. S. C. 590w, 42 U. S. C. 1480, 40 U. S. C. 442, 16 U. S. C. 590x-3. Interpret or apply secs. 3, 44, 2, 50 Stat. 523, as amended, 530, as amended, 869, as amended, sec. 12, 60 Stat. 1076, as amended, secs. 502, 506, 509, 63 Stat. 433, 435, 436, sec. 9, 68 Stat. 735; 7 U. S. C. 1003, 1018, 16 U. S. C. 590s, 7 U. S. C. 1005b, 42 U. S. C. 1472, 1476, 1479, 16 U. S. C. 590x-2.

SOURCE: §§ 304.41 to 304.46 appear at 21 F.R. 9241, Nov. 28, 1956, except as otherwise noted.

All farm development work planned and agreed upon on Form FHA-643, "Farm Development Plan," will be performed in accordance with this subpart.

(a) Time of starting farm development. Farm development work will be started as soon as practicable after the loan is closed. Before the loan is closed, no commitments with respect to performing planned farm development will be made by the County Supervisor or the borrower. The borrower will be instructed that before the loan is closed he should not incur debts for labor or materials or make expenditures for such purposes with the expectation of being reimbursed from loan funds. In areas where it is necessary to prove the water supply prior to loan closing, County Supervisors, upon authorization by the State Director, may permit applicants to commence well drilling operations prior to loan closing, provided such applicants agree in writing to pay with personal funds all costs incurred if a satisfactory water supply is not obtained.

(b) Review prior to performing work. Before the borrower begins development work, the County Supervisor will review with him each item of farm development with respect to such matters as: ade

quacy of plans and specifications; funds available for the work; items and quantities of material the borrower has agreed to furnish; and dates by which each item of farm development should be started in order that the work may be completed on schedule. If, at this time, it appears that sufficient funds are not available to complete all the farm development as planned on Form FHA-643 and the borrower cannot furnish the additional funds needed without jeopardizing his farming operations or repayment ability, the County Supervisor and the borrower will consider revising the plans and specifications or Form FHA-643, in such a way that the planned items of farm development can be completed satisfactorily. When additional funds are to be furnished by the borrower, or revisions are to be made in the plans and specifications or in Form FHA643, approved changes will be processed in accordance with §§ 304.42 (f) and 304.45, as appropriate. If the borrower cannot furnish the additional funds or if satisfactory revisions cannot be made, consideration should be given to making a subsequent loan.

§ 304.42

Farm development performed by contract method.

The contract method means performance of the work in accordance with an executed contract other than a lump sum agreement made under the borrower method in accordance with § 304.43 (c) (3). Form FHA-296, "Construction Contract," will be used, except that, for jobs involving the construction of wells, sprinkler irrigation systems, pumps, and similar items, other contract forms may be used, provided such forms customarily are used in the area and adequate provision has been made for the protection of the borrower with respect to compliance with the plans and specifications, payments for work, inspections, acceptance and completion of the work, and so forth. The United States (including the Farmers Home Administration) will not become a party to a construction contract or incur any liability thereunder.

(a) Surety bond. (1) Surety bond will be furnished in any case where:

(i) In the opinion of the County Supervisor, a surety bond appears advisable in order to protect the borrower against default of the contractor; or

(ii) The borrower requests a surety bond; or

made of the case and a ruling issued on the acceptability of the method.

[21 F. R. 1223, Feb. 24, 1956, as amended and redesignated at 21 F. R. 9239, Nov. 28, 1956] § 304.2 Minimum construction stand

ards.

(a) Site. For new buildings, a site I will be selected which is well drained and not subject to hazards such as the probability of flood or erosion. All new buildings will be suitably located in relation to other buildings. A satisfactory road to the building site will be available.

(1) Finish grading. All debris will be removed from the rough graded area before finish grading. Finish grade elevations around buildings will provide continuous slopes away from foundation walls. The finished surface of all areas will be reasonably smooth and even. The height and steepness of slopes will be such as to provide stability and reasonable freedom from erosion. Where necessary, precautionary methods will be taken such as installations of retaining walls, sodding, or planting to stabilize the soil. Areas where lawns and planting are required will have suitable topsoil of adequate depths to support plant growth.

(2) Landscaping. Lawns and planting commensurate with the type of dwelling will be arranged to provide an attractive setting for the dwelling.

(3) Walks and steps. Suitable outside steps and necessary walks to permit convenient access to the dwelling will be provided.

(b) Dwelling. Each dwelling unit will provide suitable and desirable living, sleeping, cooking, and dining accommodations, and adequate storage and sanitary facilities ordinarily considered necessary to a permanent home.

(1) Room size. Rooms will be of such size and so planned as to permit the proper spacing of adequate furniture and equipment appropriate to and essential for the use of the occupants.

(2) Bathroom. In new dwellings, the plan will include either a bathroom or space for a future bathroom large enough to include a water closet, lavatory, and tub. The arrangement of fixtures will provide at least a 90-degree door swing and comfortable use of each fixture. When the bathroom is equipped, a septic tank or other approved means for sanitary waste disposal will be provided.

(3) Closets. All bedrooms will be provided with at least one clothes closet, minimum size 2 feet deep and having a

floor area of at least 6 square feet. Where practicable, a coat closet near entrance and a linen closet near the bedroom should be provided.

(4) Food storage. Sufficient space to meet the needs of the family will be provided for food storage. Food storage space will be conveniently located and provided with proper ventilation and protection from freezing and excessive heat.

(5) Kitchen. The kitchen will be properly equipped with a sink, cupboards, drawers, and adequate working surfaces. The sink will be connected with a drain which will dispose of the waste in a sanitary manner. Adequate space will be provided for other equipment.

(6) Heater room and fuel storage. Where central heating plants are proposed, sufficient space for safety, arrangement, and clearance of all equipment, and the proper storage space for fuel will be provided. Clearances required for safety will be determined by the insulation of the heater and type of wall, floor, and ceiling covering.

(7) Light and ventilation. Natural light and ventilation will be provide in all habitable rooms by means of windows and doors. The glazed window area for each habitable room will be at least ten percent of the floor area. For adequate ventilation, the window area which can be opened will be at least four percent of floor area of room with no exterior door or two percent of floor area of room with an exterior door. The heater room will be provided with sufficient ventilation to assure proper combustion and safety. In attic areas provide effective cross ventilation for all areas between roof and cop floor ceiling. When the floor construction above a basementless space is of wood or metal and the space is not open to a ventilated basement, provide (i) at least four foundation wall vents located near the corners of the basementless space, having an aggregate free ventilating area equal to 1/160 of the ground area of the basementless space in square feet, or (ii) ground surface treatment in the form of a layer of smooth asphalt roofing weighing at least 55 pounds per 108 square feet, lapped a minimum of 2 inches, plus at least two foundation wall vents, located for effective cross ventilation, having an aggregate free ventilating area of not less than 10 percent of the above. In each screen

opening install
screening, mesh 4 to 8 per inch.

corrosion-resistant

(8) Access to attic and basementless areas. Access will be provided to the attic by means of scuttles or disappearing or permanently installed stairs. Access to basementless areas will be provided by an access door opening in the wall not less than 18 by 24 inches.

(9) Ceiling heights. Ceiling heights will be not less than 7 feet 6 inches.

(10) Doors. All doors will be sufficiently wide to provide for necessary passage of furniture and household equipment. All exterior doors will be not less than 2 feet 8 inches wide. All interior doors which provide access to habitable rooms will be not less than 2 feet 6 inches wide.

(11) Stairways. The design for stairways will be such as to afford safety and provide adequate head room and space for passage of furniture, giving particular attention to railings, landings, winders, treads, and risers.

(12) Structural requirements. (i) All portions of the structure subjected to exterior exposure will be of such material and be so constructed and protected as to prevent entrance and penetration of moisture and weather.

(ii) Adequate precaution will be taken to protect properly materials and construction from damage by ordinary use and by decay, corrosion, termites, and other destructive elements.

(iii) Workmanship will be of a quality equal to good standard practice, and materials used will be of such kind and quality as to assure reasonable durability and economy of maintenance.

(iv) All parts of the structure will be properly designed to carry the loads without detrimental effect on the wall finish or roofing material.

(v) Each member will be correctly fitted and connected.

(vi) The structure will be adequately braced against lateral stress.

(ii) Plumbing. The installation of all plumbing work will comply with the requirements of the applicable local and state regulations. In the absence of local and state regulations, the requirements contained in "Recommended Minimum Requirements for Plumbing," published by the National Bureau of Standards, will apply.

(iii) Sanitation. Privies and other individual sewage disposal systems will meet applicable local and state regulations as to design and location and, in the absence of such regulations, should meet the minimum requirements recommended by the Joint Committee on Rural Sanitation for Individual Sewage Disposal Systems as published by the United States Public Health Service.

(14) Liquefied petroleum gas. The installation and construction of all containers, piping, appliances, and other pertinent equipment for the storage and using of liquefied petroleum gas will comply with the requirements of the applicable local and state regulations. In the absence of such regulations, the recommended practices of the National Fire Protection Association Pamphlet No. 52 will apply. Piping for liquefied petroleum gas will be installed in such a manner as to insure its being run as direct as possible. Piping will not be installed in locations where seeping gas will be trapped and collect in hazardous concentration. No appliance will be installed in a room in which the facilities for venting do not permit the proper combustion of gas under normal conditions for use. Appliances will not be installed in any basement, semi-basement, or other location where escaping gas may be trapped and collect in hazardous concentration.

(15) Heating. In climates where heating is required for winter comfort, each dwelling will be provided with facilities for heating. The type and quality of performance of the equipment will conform to the class of dwelling under consideration. Where central heating systems are proposed, the heating system will be of such capacity that under normal operation it will produce and maintain comfortable temperatures within all habitable rooms under weather conditions customarily to be expected in the area. All equipment and material will conform to standards approved by