| Eligibility |
The program is adaptable for participation
by a wide variety of owners. Loans can be made to individuals,
trusts, associations, partnerships, limited partnerships, State
or local public agencies, consumer cooperatives, and profit
or nonprofit corporations.
In new
Section 515 projects, 95 percent of tenants must have very
low incomes. In existing projects 75 percent of new tenants
must have very low incomes.
Eligibility:
- Ownership -- Individuals,
partnerships, limited partnerships, for-profit corporations,
nonprofit organizations, limited equity cooperatives, Native
American tribes, and public agencies are eligible to apply.
For-profit borrowers must agree to operate on a limited-profit
basis (currently 8 percent on initial investment). Borrowers
must be unable to obtain credit elsewhere that will allow
them to charge rents affordable to low- and moderate-income
tenants.
- Tenancy -- Very low-,
low-, and moderate-income families; the elderly; and persons
with disabilities are eligible for tenancy of Section 515-financed
housing. 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 capped at $5,500
above the low-income limit. Those living in substandard
housing are given first priority for tenancy. When rental
assistance is used top priority is given to very low-income
households.
- Competitive Applications
-- Rural Development State Directors use needs criteria
to establish a list of targeted communities for which applicants
may request loan funds. A list of these communities is published
yearly in the Federal Register in the form of a Notice
of Funding Availability (NOFA). The applications are then
rated competitively in order to select recipients.
|
Fund Uses |
Rural Rental Housing Loans are direct, competitive
mortgage loans made to provide affordable multifamily rental
housing for very low-, low-, and moderate-income families; the
elderly; and persons with disabilities. This is primarily a
direct mortgage program, but its funds may also be used to buy
and improve land and to provide necessary facilities such as
water and waste disposal systems. |
Application Processing |
Loans of up to $1,500,000 must be approved
by State Directors. All requests for loans above $1,500,000
must be reviewed by the RHS National Office.
The National Office publishes a Notice of Funds Availability
in the Federal Register as soon after the start of
the Fiscal Year as possible. Generally, the NOFA should be
published around November 1.
The NOFA will indicate:
- The information that applicants must submit in their project
proposal:
- The criteria the Agency will use to evaluate and rank
project proposals;
- The deadline for submitting project proposals; and
- The state office addresses where:
- The project proposals must be sent;
- A list of designated places for the state may be obtained;
and
- The funding for the state may be obtained
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