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:
Project Grants. Place Cursor Here for Definition
Direct Loans. Place Cursor Here for Definition
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.
ELIGIBILITY
REQUIREMENTS:
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.
Beneficiary
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 the part of the assistance received as a grant. Applicant's
income may not exceed the very low-income limit set forth in RD
Instructions.
Credentials/Documentation:
Evidence of ownership and verification of income and debts. Grant
recipients must provide evidence of age. This program is excluded
from coverage under OMB Circular No. A-87.
Pre-application
Coordination: None. This program is excluded
from coverage under OMB Circular No. A-102 and E.O. 12372.
Application
Procedure: Applicants must file an application
form at the RHS/Rural Development field office serving the county
where the dwelling is located. This program is excluded from coverage
under OMB Circular No. A-110.
Award
Procedure: Delegated to Community Development
Manager.
Deadlines:
None.
Range
of Approval/Disapproval Time: From 30 to 60
days from time applications are filed if no backlog of applications
exists. Applications for assistance far exceed available funding.
There is generally a waiting list for funding.
Appeals:
Agency regulations providing customers with the rights for an
informal review, mediation or alternative dispute resolution (ADR),
or appeal to the National Appeals Division (NAD) are contained
in 7 CFR Part 3550. NAD regulations are found at 7 CFR Part 11.
Requests for an informal review, mediation and ADR must be received
within 30 days from the date of the adverse decision. Requests
for an appeal to NAD must be received within 30 days of receipt
of the adverse decision.
Renewals:
Applicants may reapply at any time.
ASSISTANCE
CONSIDERATIONS:
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.
Length
and Time Phasing of Assistance: This assistance
is available throughout the year by means of an established allocation
system. Funds are usually released to borrowers/grantees as a
lump sum payment for completed repairs or, as needed, for repairs
in progress.
POST
ASSISTANCE REQUIREMENTS:
Reports:
None.
Audits:
None.
Records:
Borrowers and/or grantees are not required to, but should retain
copies of loan or grant-related documents.
Obligations:
(Loans) FY 01 $26,389,000; FY 02 est $32,396,000; and FY 03 est
$32,396,000. (Grants) FY 01 $26,237,000; FY 02 est $30,000,000;
and FY 03 est $30,000,000.
Range
and Average of Financial Assistance:
Loans to $5,570; Grants to $4,589.
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.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult your local telephone
directory for Rural Development county office number. If no listing,
contact your Rural Development State office listed in Appendix IV
of the Catalog or visit http://www.rurdev.usda.gov/recd_map.html.
Headquarters
Office: Director, Single-Family Housing Processing
Division, Rural Housing Service, Department of Agriculture, Washington,
DC 20250. Telephone: (202) 720-1474. Use the same number for FTS.
