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Rural Development

Housing & Community Facilities Programs

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Multi-Family Housing Development

Loans and grants are provided to finance rental and cooperatively owned housing of modest size, design and cost for very low-, low-, and moderate-income households. Special emphasis is placed on needs of the elderly and handicapped. Options include:

Rural Rental Housing - Direct Loans (Section 515)  

Under the Multi-Family Housing Direct Loan program, the Housing and Community Facilities Programs makes direct loans to developers of affordable rural multi-family rental housing. Interest rates for these programs may be subsidized to as low as 1%. Funds can be used to construct new rental housing complexes or to repair and rehabilitate existing units.

For more information about this program, click here.

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Rural Rental Housing Guaranteed Loan Program (Section 538)

This program, like the direct loan program, is intended to fund construction of multi-family housing units to be occupied by low-income families. The Rural Housing Programs guarantees up to 90% of the amount of a loan from a private lender to a housing developer to be used for the construction of low-income multi family housing.

Occupants of the completed housing project must be very low- to moderate-income households; or elderly, handicapped, or disabled persons with income not in excess of 115% of the median income of the surrounding area.

For more information about this program, click here.

Farm Labor Housing  

Low-interest loans and grants are made to public and nonprofit entities (or to individual farmers) for the construction of farm labor housing. HCFP is the only national entity providing funding for this use.

Farm Labor Housing Technical Assistance Grants are provided to contractors to assist public and private nonprofit agencies to meet special needs of farm laborers.

For more information about this program, click here.

Housing Preservation Grant Program (Section 533)  

The Housing Preservation Grant Program makes grants to nonprofit organizations, local governments and Native American tribes to renovate existing low-income multifamily rental units. Funds may also be used by recipients to help individuals make repairs to private homes.

Funds can be used to upgrade a number of individual housing units, which in some cases affects the housing options in an entire community. Recipients of Housing Preservation Grants are often able to leverage the funds with additional resources from private sources or local governments.

For more information about this program, click here.

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Housing Application Packaging Grants 

This program provides government funds to tax-exempt public agencies and private non-profit organizations to package applications for submission to Housing and Community Facilities Programs. Packagers assist very low- and low-income applicants with the application process by prescreening, making preliminary eligibility determinations, ensuring the application is complete, and helping the applicant understand the program.

Packagers receive training from the Agency and receive a certificate to participate in the program.  The certificate qualifies the grantee to package applications for one year which ends September 30.   The packager may receive a fee to submit complete application packages to HCFP.

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