Content provided by the Catalog of Federal Domestic Assistance
10.427 Rural Rental Assistance Payments
RURAL HOUSING SERVICE (RHS), DEPARTMENT OF AGRICULTURE
Housing Act of 1949, as amended, Section 521, Public Laws 90-448 and 93-128, 42 U.S.C. 1490a.
To reduce the tenant contribution paid by low-income families occupying eligible Rural Rental Housing (RRH), Rural Cooperative Housing (RCH), and Farm Labor Housing (LH) projects financed by the Rural Housing Service (RHS) through its Sections 515, 514 and 516 loans and grants.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
Rental assistance may be used to reduce the rents paid by low-income senior citizens or families and domestic farm laborers and families whose rents exceed 30 percent of an adjusted annual income which does not exceed the limit established for the State as indicated in 7 CFR Exhibit C to Part 1944, Subpart A (RD Instruction 1944-A, Exhibit C). Tenants who may be eligible must occupy units in eligible RRH, RCH and LH projects financed by RHS.
Applicant Eligibility: To be eligible to participate in the rental assistance program, borrowers must have an eligible project. All projects must convert to Interest Credit Plan II before they are eligible, except direct RRH and insured RRH loans approved prior to August 1, 1968, and LH loans and grants. For a borrower to have an eligible project, the loan must be an RRH insured or direct loan made to a broad-based nonprofit organization, or State or local agency or; an RRH insured loan made to an individual or organization who has or will agree to operate the housing on a limited profit basis as defined in 7 CFR 1944.215(l) or; an RCH insured or direct loan or; an LH loan, or an LH loan and grant combination made to a broad-based nonprofit organization or nonprofit organization of farm workers or a State or local public agency. New construction and/or rehabilitation projects, utilizing the Section 8 program from HUD will not be considered eligible projects, although it may be used for eligible families in existing projects utilizing Section 8 for part of the units.
Pre-application Coordination: This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. This program is excluded from coverage under 7 CFR 3015 or 3016.
Formula and Matching Requirements: The statistical factors used for fund allocation are: 1. State percentage of RHS rural population and the source is "1990 Census" updated by ESCS; 2. State percentage of RHS rural housing units lacking plumbing and/or overcrowded and the source is "1990 Census"; and 3. State percentage of persons in poverty living in RHS rural areas and the source is "1990 Census."
POST ASSISTANCE REQUIREMENTS:
Reports: The borrower must initially submit Form RD 1944-8, "Tenant Certification," for each tenant. Subsequent tenant certifications must be obtained annually and submitted to the Rural Development Manager. Quarterly progress reports are to be made to the Rural Development Rural Development Manager during the first year of successful operation and each quarter thereafter until discontinued by the District Director. An annual report will also be necessary.
Account Identification: 12-0137-0-1-604; 12-2002-0-1-604.
In fiscal year 2001, 42,213 families were assisted. In fiscal years 2002 and 2003, the estimates are 42,800 and 43,750, respectively.
REGULATIONS, GUIDELINES, AND LITERATURE:
RD Instruction 1944-E "Rural Rental Housing Loan Policies, Procedures, and Authorizations"; 7 CFR 1822. Rental Assistance Program Fact Sheet, PA 1210 (dated September 1988). RD Instruction 930-C; "Management and Supervision of Multiple Family Housing Borrowers and Grant Recipients."
Regional or Local Office: See Regional Agency Offices. Consult your local telephone directory under U.S. 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: