MULTI-FAMILY HOUSING

Rural Development (RD) makes loans to eligible limited profit and nonprofit entities to provide rental housing for very low-, low- and moderate-income residents who live in designated rural areas. Interest credit is available on all loans to ensure that rents are affordable. The repayment term for RRH loans is 30 years but they can be amortized over a 50-year period.

Each year, RD announces the availability of funding through a Notification of Fund Availability (NOFA) that is published in the Federal Register. The current designated place list is made available when the NOFA is published.

Potential borrowers should review RD Handbook 1-3560 and corresponding handbooks to ensure that they can meet program requirements associated with these loans.

Farm Labor Housing (LH) Loans and Grants

RD makes loans to eligible limited profit and nonprofit entities and individuals to provide rental housing for very low-, low- and moderate-income farm workers, including persons who work in aquaculture. In some cases, a grant may be available in conjunction with a LH loan. The housing can be located on or off the farm in which residents are employed. Loans can be made to house year-round or migrant workers. Loans are amortized over a 33-year period at 1 percent interest.

Each year, RD announces the availability of funding through a NOFA. The current designated place list is made available when the NOFA is published.

Potential borrowers should review RD Handbook 1-3560 and corresponding handbooks to ensure that they can meet program requirements associated with these loans and grants.

Rental Assistance (RA)

Rental assistance provides an additional source of support for households with incomes too low to pay basic rent within 30 percent of their adjusted income. RA is available for RRH and LH properties; however, RA is a limited resource and is not available at all properties.

Guaranteed Rural Rental Housing (GRRH) Loans

The GRRH loan program is designed to increase the supply of affordable multi-family housing in rural areas through partnerships between RD and major lending sources, as well as State and local finance agencies and bond issuers.

The term of the loans may be for up to 40 years and the loans must be fully amortized. Rates must be fixed, as negotiated between the lender and borrower, and must not exceed the RD maximum established in the NOFA, which is published each fiscal year. The rate is based on the 30-year Treasury Bond rate on the day prior to the date of loan closing. Eligible residents may have an income of up to 115 percent of the project locality’s median income.

Potential borrowers should review RD Handbook 1-3565 and corresponding handbooks to ensure that they can meet program requirements associated with these loans.

Housing Preservation Grants (HPG)

The HPG program is available to organizations to assist very low- and low-income homeowners to repair and rehabilitate their homes. Assistance is also available to rental property owners to repair and renovate their units providing they agree to make such units available to very low- and low-income residents. Financial assistance provided by the grantee organization may be in the form of a grant, loan, interest reduction on commercial loans or other comparable assistance.

Potential grantees should review RD Instruction 1944-N to ensure that they can meet program requirements associated with these grants.

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Designated Places - Section 515