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Rural Rental
Housing Loans are direct, competitive mortgage loans made to provide
affordable multifamily rental housing for very low-, low-, and
moderate-income families; the elderly; and persons with disabilities.
This is primarily a direct mortgage program, but its funds may also be
used to buy and improve land and to provide necessary facilities such as
water and waste disposal systems.
Rural
Development State Directors use needs criteria to establish a list of
targeted communities for which applicants may request loan funds. A list
of these communities is published yearly in the Federal Register in the
form of a Notice of Funding Availability (NOFA). The applications are
then rated competitively in order to select recipients.Individuals,
partnerships, limited partnerships, for-profit corporations, nonprofit
organizations, limited equity cooperatives, Native American tribes, and
public agencies are eligible to apply. For-profit borrowers must agree
to operate on a limited-profit basis (currently 8 percent on initial
investment). Borrowers must be unable to obtain credit elsewhere that
will allow them to charge rents affordable to low- and moderate-income
tenants.
USDA Rural Development Specialists will be glad to discuss
services available from the Agency and explain application procedures.
Click here for the Rural Development Specialist closest to you.
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