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Single Family Housing Program

Multi-Family Housing Program  


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Single Family Housing Program

SECTION 502 DIRECT/GUARANTEED HOME OWNERSHIP LOANS
Two types of rural home ownership loans are available: guaranteed and direct loans. These programs offer financing with no down payment and at reasonable rates and terms. The direct loan is obtained from Rural Housing Service (RHS), and the guaranteed loan from a private financial institution which is guaranteed by RHS. Loan funds are used to purchase, construct, rehabilitate, or relocate dwellings and related facilities for low or moderate-income persons in rural areas. RHS also provides a subsidized rural home ownership direct loan for low and very-low income persons.

SECTION 504 RURAL HOUSING LOANS AND GRANTS
Home Improvement and Repair Loans and Grants allow very low-income rural homeowners to remove health and safety hazards from their homes and also make their homes accessible for disabled people. For people 62 years old or older and who are unable to repay a loan, grants may be available.

SECTION 523 SELF-HELP TECHNICAL ASSISTANCE GRANT
RHS provides qualified public and private nonprofit organizations with financing for effective programs of technical and supervisory assistance to help low-income families build homes in rural areas by the self-help method. This is the only means for many low-income households to obtain safe, sound, sanitary housing.

SECTION 509 COMPENSATION FOR CONSTRUCTION DEFECTS
In case structural defects are not covered by the contractor's warranty, the costs of correcting the defects may be paid by the Government, or the borrower may be compensated for correcting the defects under the provisions of this program.

The approval official must determine that the construction is defective, in accordance with RHS instructions. All claims for compensation for construction defects must be submitted to the National Office for authorization of funds prior to approval.

SECTION 525  TECHNICAL AND SUPERVISORY ASSISTANCE GRANTS The policy of the USDA, Rural Development is to provide Technical and Supervisory Assistance to eligible applicants to provide homeownership and financial counseling to reduce both the potential for delinquency by loan applicants and the level of payment delinquency by present RD housing loan borrowers; and facilitate the delivery of housing programs to serve the most needy low-income families in rural areas of greatest need for housing.

SECTIONS 523/524 SITE LOANS

Rural Housing Site Loans allow private or public nonprofit organizations to buy adequate building sites for development of a residential community.

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Multi-Family Housing Programs

SECTION 515 RURAL RENTAL HOUSING LOANS
Section 515 Rural Rental Housing loans are made in rural areas to provide living units for persons with low and moderate incomes and for those age 62 and older, disabled or handicapped.  Eligible applicants include individuals, trusts, associations, general partnerships, limited partnerships, State or local public agencies, and profit and nonprofit corporations. Nonprofit corporations may be organized on a regional or multi-county basis. Loans to nonprofits may be up to 100 percent of the appraised value or development cost, whichever is less. Financing is limited to 95 percent to applicants utilizing the Low Income Housing Tax Credit program, or is 97 percent if these credits are not sought. Loans are primarily used to build, purchase or repair apartment style housing. The housing must be modest in size, design, and cost, but adequate to meet the tenant's needs.

SECTION 538 GUARANTEED RURAL RENTAL HOUSING LOANS
The program has been designed to increase the availability of affordable multi-family housing through partnership between the Agency and major lending sources, as well as state and local housing finance agencies and bond issuers. Qualified lenders will be authorized to originate, underwrite, and close loans for multi-family housing projects to be guaranteed under this program. Projects may be for new construction or acquisition with substantial rehabilitation. The Agency will guarantee such loans upon review of the lender's underwriting package, appraisal report, appropriate certifications, project information, and satisfactory completion of the appropriate level of environmental review by the Agency. Lenders will be responsible for loan underwriting, management and servicing associated with these projects. The lender will be expected to provide servicing or contract for servicing of each loan it underwrites.

 SECTIONS 514/516 FARM LABOR HOUSING
Farm Labor Housing provides loans and grants to farm workers, family farm organizations, state and local public agencies, and private broad-based organizations or a nonprofit organization of farm workers. The basic objective is to provide decent, safe, and affordable housing for domestic and migrant farm labor located in areas where the need exists.

SECTION 533 HOUSING PRESERVATION GRANTS
Housing Preservation Grants are provided to nonprofit and governmental organizations to remove health and safety hazards to owner-occupied residences or rental housing for low income individuals. These grants are used along with other funding sources to accomplish the repairs.


FOR ADDITIONAL INFORMATION, PLEASE CONTACT: 

USDA, Rural Development 	Thao Khamoui - RHS Program Director             
Hawaii State Office             Telephone: (808) 933-8309
Room 311, Federal Building      FAX:       (808) 933-8327
154 Waianuenue Avenue           E-Mail: thao.khamoui@hi.usda.gov
Hilo, HI  96720
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Revised on: 3/15/02