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Rental assistance may be used in both existing and newly constructed
USDA Rural Development's Rural Rental Housing (Section 515) or Farm
Labor Housing (Section 514) financed projects. Projects must be
established on a nonprofit or limited profit basis. Tenants are
persons with very low and low incomes, the elderly, and persons with
disabilities are eligible if they are unable to pay the basic
monthly rent within 30 percent of adjusted monthly income. Very low
income is defined as below 50 percent of the area median income
(AMI); low income is between 50 and 80 percent of AMI; moderate
income is established by adding $5,500 to the low-income limit.
The Rural Rental Assistance (RA) program provides an additional source
of support for households with incomes too low to pay the USDA Rural
Development subsidized (basic) rent from their own resources. USDA Rural
Development pays the owner of a multi-family housing complex the
difference between the tenant's contribution (30 percent of adjusted
income) and the monthly rental rate.
USDA Rural Development and the project owner execute a five-year
contract in which USDA Rural Development commits payments on behalf of
tenants in a designated number or percentage of the units. Both USDA
Rural Development and the project owner agree to be bound by all
applicable USDA Rural Development regulations. The contract becomes
effective on the first day of the month in which it is executed
(additional units may be covered if funds are available and an
additional contract is executed). The agreement may be renewed as many
times as funds are made available. State Directors may transfer unused
and unneeded contracts or portions of contracts to other projects.
Priority for RA in housing financed by Section 515 is given to a project
either if a market study indicates the greatest percentage of
prospective tenants need RA or if the area has the greatest housing need
within the state and is selected for funding in accordance with the
weighted criteria (set forth in FmHA Instruction 1944-E [1944.231]).
Detailed information and applications for financial assistance are
available through Rural Development State
Offices.
Apartments for Rent
Return to Multi-Family Housing Page
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For questions, please refer to the
"Contact
Us"
page of
this website to select the proper individual. Send comments about the format of this web site to:
mailto:philip.eggman@wa.usda.gov
USDA Rural Development is an Equal Opportunity Lender, Provider and
Employer.
Complaints of Discrimination should be sent to:
USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410
EEO/CR Statement
Last modified:
February 16, 2006 |
