Content provided by the Catalog of Federal Domestic Assistance
10.417 Very Low-Income Housing Repair Loans and Grants
RURAL HOUSING SERVICE (RHS), DEPARTMENT OF AGRICULTURE
Housing Act of 1949, Title V, Section 504, as amended, Public Laws 89-117, 89-754, and 92-310, 42 U.S.C. 1474.
To give very low-income rural homeowners an opportunity to make essential repairs to their homes to make them safe and to remove health hazards to the family or the community.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners in rural areas to repair, improve, or modernize their dwellings or to remove health and safety hazards. Grant funds are only available to homeowners aged 62 or older who cannot repay a Section 504 Loan. This includes repairs or replacement of heating, plumbing or electrical services, roof or basic structure as well as water and waste disposal systems, and weatherization. Loans of up to $20,000 and grants of up to $7,500 or more are available. Loans are for up to 20 years at 1 percent interest. A real estate mortgage is required for loans of $7,500 or more. Full title services are required for loans of $7,500 or more. Grant funds may be used only to pay for repairs and improvements resulting in the removal of health and safety hazards. A grant/loan combination is made if the applicant can repay part of the cost. Loans and grants can be combined for up to $27,500 in assistance. The dwelling must be located in a place which is rural in character and does not exceed 10,000 population. Some places with population between 10,000 and 25,000 may be eligible if not within a Metropolitan Statistical Area (MSA). Assistance is available in States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Marianas, and the Trust Territories of the Pacific Islands.
Applicant Eligibility: Applicants must own and occupy a home in a rural area; and be a citizen of the United States or reside in the United States after having been legally admitted for permanent residence or on indefinite parole. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. Applicant's income may not exceed the very low-income limit set forth in RD Instructions.
Pre-application Coordination: None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.
Formula and Matching Requirements: This program has no matching requirements. This program has no statutory formula. The following basic formula criteria are to allocate program loan funds to various States: (A x .50 + B x .50)x funds available = State basic formula allocation. Where "A" is State's percentage of national number of rural occupied units; and "B" is State's percentage of national number of rural households below 50 percent of area median income. The formula for grants is: (A x 1/3 + B x 1/3 + C x 1/3)x funds available = State basic allocation. Where "C" is State's percentage of national rural population 62 years of age and older. The data source for each of these criteria are based on the latest census data available.
POST ASSISTANCE REQUIREMENTS:
Account Identification: (Loans) 12-4141-0-3-371; 12-2081-0-1-371; (Grants) 12-2064-0-1-604.
In fiscal year 2001, 4,637 loans were made and 5,460 grants were made.
REGULATIONS, GUIDELINES, AND LITERATURE:
7 CFR Part 3550, Direct Single Family Housing Loans and Grants. (no charge); Home Improvement and Repair Loans, PA-1184, no charge.
Regional or Local Office: See Regional Agency Offices. Consult your local telephone directory under Department of Agriculture for Rural Development county or district office numbers or visit the website http://offices.sc.egov.usda.gov/locator/app for a State Office listing.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: