---
kind: "section"
citation: "7 C.F.R. § 1944.404"
title: "7"
number: "1944.404"
heading: "Eligibility."
url: "https://uscodex.org/cfr/7/1944.404"
---

# §1944.404. Eligibility.


To receive a grant, the applicant must:

- (a) Be an organization as defined in [§ 1944.403(j)](/cfr/7/1944.403.md?p=j) of this subpart.
- (b) Have the financial, legal, administrative, and actual capacity to assume and carry out the responsibilities imposed by the Agreement. To meet the requirement of actual capacity it must either:
  - (1) Have necessary background and experience with proven ability to perform responsibly in the field of mutual self-help or other business management or administrative ventures which indicate an ability to perform responsibility in the field of mutual self-help; or
  - (2) Be sponsored by an organization with background experience, and ability, which agrees in writing to help the applicant to carry out its responsibilities.
- (c) Legally obligate itself to administer TA funds, provide adequate accounting of the expenditure of such funds, and comply with the Agreement and Rural Development regulations.
- (d) If the organization is a private nonprofit corporation, be a corporation that:
  - (1) **Is organized under State and local laws.**
  - (2) **Is qualified under section 501(c)(3) of the Internal Revenue Code of 1986.**
  - (3) **Has as one of its purposes the production of affordable housing.**
  - (4) **Has a Board of Directors which consist of not less than five.**

## Notes

### Source

Source: 55 FR 41833, Oct. 16, 1990, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301; 42 U.S.C. 1480.