The Rural Housing and Economic Development (RHED) program provides competitively awarded funds for capacity building at the state and local level for rural housing and economic development and to support innovative housing and economic development activities in rural areas.
HFAs and Rural Housing
HFAs are involved in a number of rural housing programs, including the US Department of Agriculture’s (USDA) Section 515 and 538 multifamily housing programs and Section 502 single-family housing program and the US Department of Housing and Urban Development’s (HUD) Rural Housing and Economic Development program.
Section 515 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. Very low-income is defined as below 50 percent of the area median income (AMI); low-income is between 50 and 80 percent of AMI; and moderate income is capped at $5,500 above the low-income limit. The Section 538 program provides federal government guarantees for loans made by commercial lenders to developers of multifamily rental housing for low- and moderate- income tenants in rural areas and is intended to provide decent, affordable rental housing for low- and moderate-income rural households with incomes up to 115 percent of AMI.
Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. They can be direct or guaranteed. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Applicants for loans may have an income of up to 115 percent of AMI. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Useful Links: USDA Rural Development, USDA Housing and Community Facilities Programs
Printer-friendly versionNCSHA Blog Posts
- January 24, 2012
On January 18, the 2012 income limits for the USDA Rural Development Single-Family Guaranteed Loan Program went into effect. - January 18, 2012
HFA directors and staff, Administration officials, and industry partners came together last week for NCSHA's HFA Institute MRBs and Federal Mortgage Insurance conference. For three days, attendees took advantage of the opportunity to network with their peers and receive top-notch education during more than a dozen sessions.
Housing Headlines
- House Financial Services Committee Press Release
- Harvard University Joint Center for Housing Studies
- Rep. Hensarling's Website
News
- February 16, 2011
The group has been working diligently for two years to address housing needs for the elderly. The members haven't earned a dime, but none of them is in it for the money. "Because of our local affiliation with management and ownership, people have trust in us to do what we say we're going to do," said Bryan Slaba, CEO of Wagner Community Memorial Hospital-Avera and the board's leader. "The reason we got involved in this was for one thing and one thing only, and that was to investigate and create housing for our elderly in our community." - April 21, 2010
Finding suitable housing in many rural North Dakota communities is a difficult task. In some areas, it has been a generation since new homes or apartments were built. In that time, both the economy and the needs of the people have changed.
Rural Housing - Resources
- January 23, 2012
- December 19, 2011NCSHA signed this letter urging the Administration to propose FY 2013 funding levels for USDA rural housing programs at their FY 2011 appropriated levels or higher.
