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.
- To find local housing assistance, please contact your state’s Housing Finance Agency (HFA).
- To learn more about NCSHA’s advocacy work in this area or to attend a related education event, complete the general inquiry form.
- Members of the media, please contact Lisa Bowman, Director of Marketing and Communications, at firstname.lastname@example.org.
- USDA Rural Development
- USDA Housing and Community Facilities Programs
- Rural Housing Service’s Eligibility Maps for single-family and multifamily programs
- March 28, 2018USDA Debuts New Eligibility Maps for Rural Housing Service Programs
The U.S. Department of Agriculture (USDA) last week announced proposed changes to the maps it uses to determine whether certain areas are eligible for Rural Housing Service’s (RHS) single-family and multifamily housing programs.
- March 22, 2018FY 2018 Omnibus Spending Bill Includes Significant Victories for HOME, Housing Credit, and Other Affordable Housing Programs
The House today approved a $1.3 trillion omnibus spending bill to fund the federal government for the remainder of Fiscal Year (FY) 2018.
- March 2, 2018USDA Announces Technical Assistance Grants for the Preservation of Section 515 Properties
The U.S. Department of Agriculture (USDA) earlier this week published a Request for Proposals (RFP) soliciting applications from qualified non-profit organizations and public housing authorities (PHA) who will provide legal and technical assistance to organizations seeking to acquire Rural Housing Service (RHS) Section 515 properties with maturing mortgages.
Rural Housing - Resources
- May 15, 2018Industry Letter on FY 2018 Proposed Rescission for Rental Assistance
The undersigned rural housing and community development organizations and trade associations submitted this letter to elected officials on both the Senate and House Appropriations committees regarding a portion of the Rescission package that would negatively impact rural affordable housing providers and residents.
- May 24, 2016USDA Rural Development Unnumbered Letter on Management of Unused Rental Assistance
An “Unnumbered Letter” allowing state RD offices to reallocate unused rental assistance (RA) within their states without approval from the national office, reversing a policy in place since 2013 requiring state offices to return unused RA to the national office to be recaptured.
- May 16, 2016Enterprise and JCHS: Projecting Trends in Severely Cost-Burdened Renters: 2015–2025
At last measure in 2013, over one in four renters, or 11.2 million renter households, were severely burdened by rents that took up over half their incomes.