Assist public or private nonprofit organizations with the purchase and development of adequate sites, including the construction of essential access roads, streets, utility lines, and necessary equipment which will become a permanent part of the development.

The applicant must be a private or public nonprofit organization.

$100,000 or total development costs or value of property as improved, whichever is less. Can be a larger loan if prior authorization is obtained from the National Office.

The application will be in the form of a letter to the Rural Development local office or area office, including a financial statement, general description of the project, estimated cost and amount of loan needed, evidence of inability to obtain credit elsewhere, evidence of need for the proposed sites in the locality by low- and moderate-income families, evidence of any state, county or local planning, zoning or other ordinance imposing additional restrictions upon the proposed site.

Current Rural Development note rate for 524 loans. Three percent for 523 Self-Help Housing. Maturity date will be two years from the date the loan is made. National Office may authorize an extension of the maturity date.

Each loan will be secured by a mortgage on the property purchased or improved with the loan and a security interest in the funds held by the corporation in trust for the Government.

Allocations are maintained at the National Office. Applicants must get prior National Office approval before proceeding with the final request.

• Access roads, streets, utility lines.

• Purchase of land.

• Public water and waste disposal facilities if they are not available and cannot reasonably

• Engineering fees, legal fees, and closing costs.

• Actual cash costs of incidental administrative expenses such as postage, telephone,

• Needed landscaping, planting, seeding, or sodding, or other necessary facilities related

• Purchase more land than immediate need for locality (generally, the number of lots

• Payment of commissions or refinancing debts.

• Purchase of land from a member of applicant-organization.

• To develop lots which will be excessive in costs.

The sites developed with a site loan (Sec. 524) must be for housing low- and moderate-income families and may be sold to families, nonprofit organizations, public agencies, and cooperatives eligible for assistance under any Section of Title V of the Housing Act of 1949. This could be a private lender, HUD, individuals who are eligible for a VA guaranteed loan, or state or local public agencies such as a housing authority as long as they meet the income guidelines.