Guaranteed Rental Housing Loans
The Guaranteed Rural Rental Housing Program was established
to increase the supply of moderately-priced housing in rural
areas; ensure that housing is affordable to low- and
moderate-income rural residents whose incomes are 115 percent of
area median income (AMI) or less; provide housing that is
decent, safe, sanitary, and competitive in the market; and
foster risk-sharing partnerships with public and private
lenders. Under the program, the Agency will provide credit
enhancements to encourage private and public lenders to make new
loans for affordable rental properties that meet program
An applicant must:
Must be a U.S. citizen(s) or legal resident(s), a U.S. owned
corporation, a limited liability corporation (LLC) or a
partnership in which the principals are U.S. citizens or
permanent legal residents. Other than public agencies, Indian
tribes, and individuals, borrowers must provide documentary
evidence that they are valid legal entities, licensed to do
business in the state in which the property is located and able
to enter into agreements governing the loan and guarantee.
Must be an approved and currently active lender in one of the
following multifamily housing programs, the Federal National
Mortgage Association (Fannie Mae), the Federal Home Loan
Mortgage Corporation (Freddie Mac), the Department of Housing
and Urban Development (HUD) or the Government National Mortgage
Association (Ginnie Mae).
A State or local housing finance agency, a member of the Federal
Home Loan Bank System or other lender may be eligible to
participate if they can demonstrate satisfactory experience with
The program is designed to provide affordable housing for low-
or moderate-income families or individuals whose incomes at
initial occupancy do not exceed 115 percent of the AMI adjusted
for family size. Monthly
rent for a unit may not exceed 30 percent of 115 percent of
adjusted AMI. Average
project rent may not exceed 30 percent of 100 percent of AMI.
Fund Uses: The program has been designed to increase the supply of affordable multifamily
housing through partnerships between HCFP and major lending sources, as well as State and local
finance agencies and bond issuers.
The maximum loan to value is 90% for for-profit entities and 97%
for non-profit entities. The guaranteed loan has a minimum term of 25 years and a maximum
term of 40 years. There is no maximum or minimum loan amount. The interest rate negotiated between the borrower and
lender is fixed for the life of the guaranteed loan.
Basic Instructions: 7 C.F.R. 3565 and HB-1-3565
2013 GRRHP NOFA: Notice of Funding Availability for Loan Guarantees under Section
538 Guaranteed Rural Rental Housing Program (GRRHP) for fiscal year 2013. Closing date: December 31, 2013.