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Rural Rental Housing 

Description:

Rural Rental Housing loans provide economically designed housing for very-low, low, and moderate income families, the elderly, and 
the handicapped.

Loan Purposes:

Loan funds can be used to:

  • Construct new housing
  • Purchase and rehabilitate existing buildings when the cost does not exceed new construction by more than 5%
  • Purchase and improve land needed for the development
  • Develop and install streets, water supply and sewage disposal
  • Develop related facilities such as recreational areas
  • Pay related costs such as architectural fees.

Who Is Eligible?

Loans can be made to individuals, trusts, associations, partnerships, limited partnerships, state or local public agencies, or profit and 
non-profit corporations. Non-profit corporations may be organized on a regional or multi-county basis.

Other Criteria:

Applications for new construction will only be accepted in designated places based on need as determined by Rural 
Development. The list will be distributed to applicants upon request..

FY 2003 Allocation

Funds for FY '03 have not been announced at this time. 

    Due to the limited appropriations, funds were not allocated to the states in FY '02. States had to compete for funds. No one state received 
    more than $2,500,000 for new construction with no single loan request exceeding $1,000,000.

    Total funding in FY '02 was as follows:

    $114,068,998, of which $49,000,000 was available for new construction as follows:

    Section 515 new construction     funds ........................ $16,715,502
    Set-aside for nonprofits ......                                      10,266,209
    Set-aside for Underserved Counties and Colonias ....   5,703,450
    Set-aside for EZ, EC, and REAP Zones .................. 14,814,839
    State Rental Assistance(RA) Designated reserve          1,500,000

    Loan Amount:

    The maximum loan for applicants using Low Income Housing Tax Credits (LIHTC) is limited to 95% of the Total Development Cost 
    (TDC) or appraised value, whichever is less. For applicants not utilizing LIHTC, the loan will be limited to no more than 97% of the 
    TDC or security value, whichever is less.

    Loan Maturity

    Loans are subsidized with an effective interest rate of 1%, with a repayment period of 30 years, but amortized up to 50 years if 
    necessary. In return for the 1% effective rate, profit type applicants must agree to limit their profit to an 8% return on investment.

    Where Do You Apply?

    A Notice of Funds Availability (NOFA) is announced each year in the Federal Register. The NOFA for FY 2002 was dated February 
    25, 2002. Applications were due by April 26, 2002. Applications may be obtained by calling the Multi-Family Housing Division in the 
    Georgia State Office at 706-546-2164. Applications for funding can be obtained at the following address:

    USDA, Rural Development
    Multi-Family Housing Division
    Stop 307
    355 East Hancock Avenue
    Athens, Georgia 30601-2768

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    Please send any comments or suggestions to:   craig.scroggs@ga.usda.gov

    Last Updated : February 05, 2003