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:
Direct Payments for Specified Use. Place Cursor Here for Definition
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.
ELIGIBILITY
REQUIREMENTS:
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.
Beneficiary
Eligibility: Any very low and low-income family,
handicapped or senior citizen that is unable to pay the approved
rental rate for an eligible RHS rental assistance unit within
30 percent of their adjusted monthly income and whose adjusted
income does not exceed the limit established for the State as
indicated in Exhibit C to Part 1944, Subpart A (7 CFR).
Credentials/Documentation:
The applicant must be the owner or plan to become an owner of
an eligible RHS RRH,RCH, or LH project operating on a limited
profit or nonprofit basis. This program is excluded from coverage
under 7 CFR 3015 or 3016.
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.
Application
Procedure: Eligible borrowers will initiate
the processing by submitting Form RD 1944-25, "Request for Rental
Assistance". Applications shall then be reviewed under the procedure
set forth in Exhibit E of RD Instruction 1930-C. This program
is excluded from coverage under 7 CFR 3015 or 3016.
Award
Procedure: After the application has been
reviewed by the Rural Development Manager, it is given final approval
by the State Director. The State Director will determine the number
of rental assistance units to be given from the total of units
that were allocated to the State. Projects may be eligible for
rental assistance for up to 100 percent of the number of units
in the project.
Deadlines:
None.
Range
of Approval/Disapproval Time: From 30 to 90
days from the time Form RD 1944-25, "Request for Rental Assistance"
is filed.
Appeals:
Applicant may request reconsideration on the basis of pertinent
facts concerning the application under the provisions of RD Instruction
1900-B.
Renewals:
Rental assistance contracts for new as well as existing projects
may be renewed for an additional 5 years at the end of the original
contract subject to the availability of funds.
ASSISTANCE
CONSIDERATIONS:
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."
Length
and Time Phasing of Assistance: Rental assistance
contracts shall be for 5 years.
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.
Audits:
Borrowers not covered by OMB Circular No. A-133, are required
to provide audits annually with 25 or more units per project.
Audits are conducted by a certified public accountant selected
by the borrower. This program is also subject to audit by the
USDA Office of Inspector General. In accordance with the provisions
of 7 CFR Part 3052, 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.
Records:
Adequate operating records must be maintained by borrower.
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."
INFORMATION
CONTACTS:
Regional
or Local Office: Consult your local telephone
directory for Rural Development district office number. If no listing,
contact the appropriate Rural Development State office listed in
Appendix IV of the Catalog.
Headquarters
Office: Director, Multi-family Housing Portfolio
Management Division, Rural Housing Service, Department of Agriculture,
Washington, DC 20250. Telephone: (202) 720-1600. Use the same
number for FTS.
