The RA Program provides support for households incomes too low to pay the HCFP subsidized rent from their own resources. HCFP pays the owner of a multi-family housing complex the difference between the tenant’s contribution (30% of adjusted income) and the monthly rental rate.

Eligibility:

For Projects, RA may be used in both existing and new construction HCFP Rural Rental Housing (Section 515) or Farm Labor Housing (Section 514) financed projects. Projects must be established on a nonprofit or limited profit basis.

For Tenants, RA assists persons with very low or low incomes, the elderly, and persons with disabilities. They must be unable to pay the basic monthly rent within 30% of adjusted monthly income. Very Low income is defined as below 50% of the area median income (AMI); Low is income between 50 and 80% of AMI; moderate income is established by adding $5,500 to the low income limit.

Fund Uses:

Priority for RA, in multi-family housing projects financed with Section 515 funds, is given to a project if either a market study indicates the greatest percentage of tenants need RA or if the area within the State indicates the greatest need for RA. Selection for funding is made in accordance with the weighted criteria set forth in FmHA Instruction 1944-E [1944.231]).

RA requests are approved by the State Director.

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