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Section 538 Rural Rental Guaranteed Loan Program. This program provides affordable rental housing to low- to moderate-income people by providing 90 percent guarantees to certified lenders. For the for-profit sector, the guarantees cover 90 percent loan-to-value ratios. For the non-profit sector they cover 97 percent loan-to-value ratios.
Farm Labor Housing Direct Loans. Section 514 direct loans are available for farm owners, public bodies, and non-profit associations to provide living quarters, furnishings, and related facilities for domestic farm workers. The Section 514 loans have a 1 percent interest rate and a maximum term of 33 years. The Section 516 grants are used in conjunction with the loans to finance off-farm rental housing which will be affordable for low-wage farm workers. Grants are only available to a governmental or non-profit organization and may not exceed 90% of the total project cost. Section 521 rental assistance can also be used in conjunction with this program. Farm workers who lease Section 514/516 Farm Labor Housing units must be either US citizens or permanent residents. A majority of their income must come from farm work.
Section 521 Rental Assistance. In 1989, one in five rural households paid more than 30 percent of its income for housing costs. The Section 521 Rental Assistance Program helps to mitigate that rent overburden and also enable very low- and low-income rural residents to live in decent, safe, and sanitary housing. Rental Assistance is project-based assistance used in conjunction with the Section 515 and Section 514/516 programs. The program provides rental assistance payments directly to the owners of some RHS-financed rental projects under contracts specifying that Rental Assistance beneficiaries will pay no more than 30 percent of their income for rent. This subsidy goes to the unit, not to an individual tenant.
Program Activity: Rural Rental | FY 1998 | FY 1999 | FY 2000 | FY 2001 |
|---|---|---|---|---|
Program Level | $761m | $810m | $902m | $1.055b |
PERFORMANCE GOALS AND | FY 1998 | FY 1999 | FY 2000 | FY 2001 |
|---|---|---|---|---|
Improve the quality of life for the | ||||
Total number of new units built (FY) | 3,942 | 5,351 | 5,668 | 8,654 |
Sec. 515 | 2,413 | 2,189 | 1,487 | 1,401 |
Sec. 514/516 | 419 | 622 | 719 | 801 |
Sec. 514/516 Natural Disaster | NA | 0 | 169 | 0 |
Sec. 538 | 1,110 | 2,540 | 3,293 | 6,452 |
Total number of units rehabilitated (FY) | 8,657 | 4,736 | 5,428 | 6,501 |
Sec. 515 | 5,472 | 2,340 | 3,694 | 4,115 |
Sec. 514/516 | 210 | 626 | 400 | 490 |
Sec. 533 | 2,975 | 1,770 | 1,334 | 1,896 |