Multi-Family Housing Programs
Multi-Family Housing (MFH) Loan and Grant Programs
USDA Rural Development programs provide direct and guaranteed loans to assist
in the construction, acquisition and rehabilitation of existing buildings (not
previously used to provide MFH), and rehabilitation of existing Rural
Development financed properties. Grants are available to non-profit owners
in some program areas. Rental assistance or voucher assistance for tenants is also available to those
qualifying individuals and families.
Programs and Resources
Section 515-Direct Rural Rental Housing
(RRH) Loan Program
This program is available for participation by a wide variety of owners. Loans can be made to individuals, trusts, associations, partnerships, limited partnerships, limited liability companies, State or local public agencies, consumer cooperatives, and profit or nonprofit corporations.
Section 538-Guaranteed Rural Rental Housing
The Guaranteed Rural Rental Housing Program guarantees loans for the development of multi-family housing facilities in rural areas. Loan guarantees are provided for the
construction, acquisition with rehabilitation, or rehabilitation only (for
existing Rural Development financed properties) of rural multi-family housing.
Section 533-Housing Preservation Grant (HPG) Program
The Housing Preservation Grant program provides grants to sponsoring
organizations to be used for the repair or rehabilitation of very low and
low-income housing in rural communities.
Section 514/516 Farm Labor Housing (FLH) Loan and Grant Program
The Farm Labor Housing Loan and Grant program provides capital financing for
the development of housing for domestic farm laborers.
Technical and Supervisory Assistance (TSA) Grants
Technical and Supervisory Assistance Grants may be made to public or private
nonprofits, corporations, agencies, institutions, organizations, Indian
Tribes, and other associations. The TSA grant funds are to be used for
a housing delivery system and counseling program to include a comprehensive
program of technical and supervisory assistance as set forth in the grant
agreement and any other special conditions as required by the Rural Housing
Section 521-Rental Assistance Program (RA)
The Rural Rental Assistance program provides an additional source of
support for households with incomes too low to pay the tenant's contribution
(30 percent of the household adjusted family income) towards the minimum
rent at an Rural Development financed property.
The owner is paid the difference between the tenant's portion of the rent
and the monthly rental rate. RA is funded annually for renewal of
contracts that will expend all funds within the following fiscal year.
Funding is monitored and allocated by the Rural Development Portfolio
Management Division (PMD) in the National Office.
Section 542-Rural Development Voucher Program
Available only to low income tenants of Rural Development financed
multi-family properties where the Section 515 loan has been paid off, either
through the prepayment process or a foreclosure action, prior to the loan's
maturity date and after September 30, 2005. Vouchers are intended to
offer protection to income eligible tenants who may experience economic
hardship in these instances. After the property is removed from the
Rural Development portfolio, affordable housing requirements and rental
assistance subsidies generally cease to exist. Rents may increase,
thereby making the housing unaffordable to tenants. After the property
is removed from the Rural Development portfolio, a Rent Comparability Study
(RCS) is used to determine the comparable rent in the market area. The
tenant's contribution (30 percent of their adjusted family income) is
subtracted from the comparable rent to determine the amount of assistance
needed. The voucher amount remains the same so long as the tenant
remains income eligible for assistance. The tenant may be able to use
the voucher at the property or may be able to move and use the voucher at
Multi-Family Housing Preservation and Revitalization (MPR) Loan and Grant Program
The Multi-Family Housing Preservation and Revitalization program is used to
restructure Rural Rental Housing and Off-Farm Farm Labor Housing loans
through available servicing actions (e.g. deferral of payments, zero percent
loans, reamortization) and grants (to nonprofits only) to revitalize
existing Rural Development financed properties. This is done in order
to extend the affordable use of these properties without displacing tenants
due to increased rents.