This program provides Government funding for a public or private non-profit organization to buy and develop building sites, including the construction of access roads, streets, and utilities.  Sites developed under this program may be sold to individual households, non-profit organizations, public agencies, and cooperatives who provide financial assistance for housing to low- and moderate-income families.

Purpose: Rural Housing Site Loans are made to provide financing for the purchase and development of housing sites for low- and moderate-income families. Section 523 loans are made to acquire and develop sites only for housing to be constructed by the self-help method. Section 524 loans are made to acquire and develop sites for any low- or moderate-income family. Low income is defined as between 50 and 80 percent of the area median income (AMI); the upper limit for moderate income is $5,500 above the low-income limit.

Eligibility: Section 523 loans are limited to private or public nonprofit organizations that will provide sites solely for self-help housing. Section 524 loans are made to private or public nonprofit organizations. Section 524 sites may be sold to low- or moderate-income families utilizing RHS or any other mortgage financing program which serves the same eligible families.

Terms: Loans are for two years. Section 523 loans bear 3 percent interest. At the discretion of the customer, Section 524 loans bear the market rate of interest either at the time of approval or at the time of the loan closing.

Standards: The site development standards and policies in FmHA Instructions 1924-A and 1924-C apply.

Approval: State Directors may approve site loans for up to $200,000. Larger loans require prior approval of the National Office.

Basic Instruction: FmHA Instruction 444.8 (CFR Part 1822 Subpart G). FmHA Instruction 1924-C.