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
Program (GRRHP)

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 Service (RHS).

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.