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 email@example.com.
- USDA Rural Development
- USDA Housing and Community Facilities Programs
- Rural Housing Service’s Eligibility Maps for single-family and multifamily programs
- October 25, 2018Freddie Mac Releases White Papers on Housing Credit Use in Appalachia and Indian Areas
Freddie Mac has published two white papers, “LIHTC in Middle Appalachia” and “LIHTC in Indian Areas,” highlighting how the Housing Credit is being used to bring affordable rental housing to underserved markets.
- September 7, 2018HAC Report Describes Shortage of Affordable Rural Rental Housing
The Housing Assistance Council (HAC) Thursday published a report, Rental Housing for a 21st Century Rural America: A Platform for Preservation, discussing declining affordable rental housing options in rural areas. The report focuses on the U.S. Department of Agriculture’s (USDA) Section 515 Rural Rental Housing program (Section 515) and draws its conclusions from a “multi-faceted review” of USDA’s multifamily housing portfolio.
- August 31, 2018USDA Proposes Changes to Single-Family Loan Programs
USDA’s Rural Housing Service (RHS) today issued a proposed rule that would implement several changes to its single-family direct and guaranteed loan programs.
Rural Housing - Resources
- November 1, 2018NCSHA Comments on USDA Income Banding Rule
NCSHA submitted a letter to the U.S. Department of Agriculture, on behalf of the state Housing Finance Agencies, regarding the department’s proposed rule making amendments to the Single Family Housing Direct Home Loan Program and the Single Family Housing Guaranteed Loan Program (SFHGLP).
- November 1, 2018NCSHA Comments to USDA on Maximum Interest Rate Proposed Rule
NCSHA submitted a letter to the U.S. Department of Agriculture, on behald of the state Housing Finance Agencies, regarding the department's request for information on the maximum interest rate for single-family loans insured through USDA's Single Family Housing Guaranteed Loan Program (SFHGLP).
- November 1, 2018NCSHA Comments on USDA Servicing Rule
NCSHA submitted a letter to the U.S. Department of Agriculture regarding the opportunity to respond the their proposed rule that would amend the loss claims and loss mitigation processes for loans originated through USDA's Single Family Housing Guaranteed Loan Program.
- 2018 NCSHA Annual Conference & Showplace | NCSHA Members Only | October 13 – 16, 2018