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Housing
Housing
Rural Rental Housing Loan Program
Provides financing to eligible applicants and entities for new construction
or acquisition with rehabilitation of existing buildings into new rental housing
projects.
Eligibility:
- Eligible applicants include individuals, non-profits, housing
authorities, partnerships, and corporations.
- Applicants must meet the test of credit as well as legal capacity,
credit history and financial and management capacity requirements.
Terms and Conditions:
- The maximum loan term is 30 years with amortization up to 50 years if
needed for affordability.
- Subsidies (Rental Assistance-RA*) are available to lower a tenant's
monthly contribution in order to make rent more affordable.
- Tax credits, trust funds, and other funding can be used as leveraging in
addition to funding from RD. Total funding can be up to 102 percent of
the market value for non-profit borrowers and 95-97 percent for for-profit
borrowers.
- Properties are designated elderly or family.
- Project need must be shown.
- Eligible entities are invited to apply under a Notice of Funding
Availability (NOFA) which is announced each year.
*With RA, very low and low income tenants pay
30 percent of their annual adjusted income for rent and utilities.
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