Content provided by the Catalog of Federal Domestic Assistance
Rural Rental Housing Loans
HOUSING SERVICE (RHS), DEPARTMENT OF AGRICULTURE
Act of 1949, as amended, Sections 515 and 521, Public Law 102-550,
42 U.S.C. 1485, 1490a.
provide economically designed and constructed rental and cooperative
housing and related facilities suited for rural residents.
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AND USE RESTRICTIONS:
can be used to construct, or to purchase and substantially rehabilitate
rental or cooperative housing or to develop manufactured housing
projects. Housing as a general rule will consist of multi-units
with two or more family units and any appropriately related facilities.
Funds may also be used to provide approved recreational and service
facilities appropriate for use in connection with the housing and
to buy and improve the land on which the buildings are to be located.
Loans may not be made for nursing, special care, or institutional-type
Eligibility: Applicants may be individuals,
cooperatives, nonprofit organizations, State or local public agencies,
profit corporations, trusts, partnerships, limited partnerships,
and be unable to finance the housing either with their own resources
or with credit obtained from private sources. However, applicants
must be able to assume the obligations of the loan, furnish adequate
security, and have sufficient income for repayment. They must also
have the ability and intention of maintaining and operating the
housing for purposes for which the loan is made. Loans may be made
in communities up to 10,000 people in MSA areas and some communities
up to 20,000 population in non- MSA areas. Applicants in towns of
10,000 to 20,000 should check with their local Rural Development;
office to determine if the agency can serve them. Assistance is
available to eligible applicants in States, Puerto Rico, the Virgin
Islands, Guam, American Samoa, the Northern Mariana's, and the Trust
Territory of the Pacific Islands.)
AND AWARD PROCESS:
Eligibility: Occupants must be very low-,
low- or moderate-income families households, elderly, handicapped,
or disabled persons.
Applicants must furnish evidence of the following: (a) A comprehensive
market analysis showing the need for such service; (b) a legal
capacity to incur the obligation and operate the housing; (c)
a sound budget; (d) good credit history; (e) inability to obtain
necessary funds from other sources on terms and conditions that
would enable the applicants to rent the units for amounts that
are within payment ability of eligible very low, low-, or moderate-income
family, households, elderly, handicapped, or disabled occupants.
This program is excluded from coverage under OMB Circular No.
Coordination: Not applicable. This program is
excluded from coverage under E.O. 12372.
Procedure: For FY 01 the Section 515 Program
will be awarded through a Notice of Funding Availability (NOFA)
announced in the Federal Register December 26, 2000. The NOFA
application period is 90 days from the date of the announcement.
The NOFA deadline is March 26, 2001.
Procedure: Applications will be scored on
the following factors (the factors are the same as last year's
except for the additional requirement (shown in italics) that
has been added to factor 4, the National Office initiative): (1)
The presence and extent of leveraged assistance for the units
that will serve RHS income-eligible tenants at basic rents comparable
to those if RHS provided full financing, computed as a percentage
of the RHS total development cost. (0 to 20 points); (2) the units
to be developed are in a colonia, tribal land, EZ, EC, or REAP
community, or in a place identified in the State Consolidated
Plan or State Needs Assessment as a high need community for multifamily
housing. ("State" refers to the State Government.) (20 points);
(3) the loan request includes donated land meeting the provisions
of 7 CFR 1944.215(r)(4). (5 points); and (4) in States where RHS
has an on-going formal working relationship, agreement or Memorandum
of Understanding (MOU) with the State to provide State resources
(State funds, State RA, HOME funds, CDBG funds, or Low-Income
Housing Tax Credits) for RHS proposals; or where the State provides
preference or points to RHS proposals in awarding such State resources,
20 points will be provided to loan requests that include such
State resources in an amount equal to at least 5 percent of the
total development cost. (National office initiative) (20 points).
March 26, 2001.
of Approval/Disapproval Time: Within 30 days,
States will review and score the applications and submit a list
of applications in rank and point score order to the National
Office. Following the State's submission of applications to the
National Office, within 30 days the National Office will rank
applications on a nation-wide basis and advise States of the results.
Applicant may request reconsideration on the basis of pertinent
facts concerning the application.
Applicants may reapply at next Notice of Funding Availability
and Matching Requirements: This program is now
a Notice of Funding Availability (NOFA). Rural Development State
Directors use needs criteria to establish a list of targeted communities
for which applicants may request loan funds. Applications are then
rated competitively in order to select recipients.
and Time Phasing of Assistance: Loans are
for up to 30 years at an effective 1 percent interest rate, and
are amortized over 50 years. A current rate is used for the promissory
not but thereafter is used only to determine maximum rent payments.
Tenants pay basic rent or 30 percent of adjusted income, whichever
is greater. RHS rental assistance subsidy can be used to limit
tenant payment to 30 percent of their income. Loans made through
contracts entered into on or after December 15, 1989 cannot be
Monthly progress reports are to be made to the Rural Development
Manager, during the first six months of successful operation and
each month thereafter until discontinued by the Rural Development
Manager. Annual reports required thereafter.
For borrowers not covered under OMB Circular No. A-133, annual
audits conducted in accordance with Government Auditing Standards
are required from borrowers with 25 or more units in any project.
In accordance with the provisions of 7 CFR Part 3052, "Audits
of States, Local Governments, and Non-Profit Organizations," which
implement OMB Circular No. A-133 (Revised, June 24, 1997), "Audits
of States, Local Governments, and Non-Profit Organizations," nonfederal
entities that receive financial assistance of $300,000 or more
in Federal awards will have a single or a program-specific audit
conducted for that year. Nonfederal entities that expend less
than $300,000 a year in Federal awards are exempt from Federal
audit requirements for that year, except as noted in 7 CFR 3052.
Good business records required.
Identification: 12-4141-0-3-371; 12-2081-0-1-371.
(New Construction funds) FY 01 $50,100,000; FY 02 est $49,000,000;
and FY 03 est $49,000,000.
and Average of Financial Assistance:
No Data Available.
In fiscal year 2001, development of estimated 1,626 housing units
were provided and 4,990 units were rehabilitated.
GUIDELINES, AND LITERATURE:
RD Instruction 1944-E, "Rural Rental Housing Loan Policies Procedures,
and Authorizations;" 7 CFR 1944.201-1944.250; 1822.231-1822.244;
Rural Rental Housing, PA-1399, and Congregate Housing Financed by
or Local Office:
See Regional Agency Offices. Refer to the NOSA which lists Offices to contact or consult your local telephone directory for Rural Development county or district office number. If no listing, get in touch with appropriate Rural Development State office listed in Appendix IV of the Catalog or on the internet at http://www.rd.usda.gov/contact-us/state-offices.
Office: Director, Multi-Family Housing Processing
Division, Rural Housing Service, Department of Agriculture, Washington,
DC 20250. Telephone: (202) 720-1604. Use the same number for FTS.
Web Site Address:
OF FUNDED PROJECTS:
FOR SELECTING PROPOSALS: