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Rural Rental Housing (RRH) Loans
Rural Development (RD) makes loans to eligible
limited profit and nonprofit entities to provide rental housing for very low-,
low- and moderate-income residents who live in designated rural areas. Interest
credit is available on all loans to ensure that rents are affordable. The
repayment
term for RRH loans is 30 years but they can be amortized over a 50-year period.
Each year, RD announces the
availability of funding through a Notification of Fund Availability (NOFA) that
is published in the Federal Register. The
current designated place list is made available when the
NOFA is published.
Potential borrowers should review
RD Handbook 1-3560 and corresponding handbooks to ensure that they can meet
program requirements associated with these loans.
Farm
Labor Housing (LH) Loans and Grants
RD makes loans to eligible
limited profit and nonprofit entities and individuals to provide rental housing
for very low-, low- and moderate-income
farm workers, including persons who work in aquaculture. In some cases, a grant
may be available in conjunction with a LH loan. The housing can be located on or off the farm in which residents are
employed. Loans can be made to house year-round or migrant workers. Loans are
amortized over a 33-year period at 1 percent interest.
Each year, RD announces the
availability of funding through a NOFA. The
current designated place list is made available when the
NOFA is published.
Potential borrowers should review
RD Handbook 1-3560 and corresponding handbooks to ensure that they can meet
program requirements associated with these loans and grants.
Rental Assistance (RA)
Rental assistance provides an additional
source of support for households with incomes too low to pay basic rent within
30 percent of their adjusted income. RA is available for RRH and LH properties;
however, RA is a limited resource and is not available at all properties.
Guaranteed Rural Rental Housing (GRRH)
Loans
The GRRH loan program is designed to increase
the supply of affordable multi-family housing in rural areas through
partnerships between RD and major lending sources, as well as
State and local finance agencies and bond issuers.
The term of the loans may be for up to 40
years and the loans must be fully amortized. Rates must be fixed, as negotiated
between the lender and borrower, and must not exceed the RD
maximum established in the
NOFA, which is
published each fiscal year. The rate is based on the 30-year Treasury Bond rate
on the day prior to the date of loan closing. Eligible residents may have an
income of up to 115 percent of the project locality’s median income.
Potential borrowers should review
RD Handbook 1-3565 and corresponding handbooks to ensure that they can
meet program requirements associated with these loans.
Housing Preservation Grants (HPG)
The HPG program is available to organizations
to assist very low- and low-income homeowners to repair and rehabilitate their
homes. Assistance is also available to rental property owners to repair and
renovate their units providing they agree to make such units available to very
low- and low-income residents. Financial assistance provided by the grantee
organization may be in the form of a grant, loan, interest reduction on
commercial loans or other comparable assistance.
Potential grantees should review
RD Instruction 1944-N to ensure that they can meet program requirements
associated with these grants.
Multi-Family Housing
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