What does this program do?
This program provides competitive financing for affordable multi-family rental housing for low-income, elderly, or disabled individuals and families in eligible rural areas.
Who may apply for this program?
This program assists qualified applicants that cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants. Qualified applicants include:
- Individuals, trusts, associations, partnerships, limited partnerships, nonprofit organizations, for-profit corporations and consumer cooperatives.
- Most state and local governmental entities.
- Federally-recognized Tribes
Borrowers must have legal authority needed to construct, operate and maintain the proposed facilities and the services proposed
What is an eligible area?
A list of designated eligible places is available from each RD State Office.
How may funds be used?
Construction, improvement and purchase of multi-family rental housing for low-income families, the elderly and disabled individuals is the primary objective for this program.
Funding may also be available for related activities including:
- Buying and improve land
- Providing necessary infrastructure
- For a complete list see Code of Federal Regulations, 7 CFR Part 3560.53.
Who may live in the rental housing?
- Very-low income to moderate-income families or individuals (1)
- Elderly people aged 62 or older
- People with disabilities
What kinds of funding are available?
Direct, competitive loans
What are the loan terms?
- Up to 30 year payback period
- Lowest rate at either the time of loan approval or loan closing will be used
- Contact your local RD Office for details and current interest rates applicable for your project
How do we get started?
Applications for this program are accepted on an annual basis. A Notice of Funding Availability (NOFA) is posted in the Federal Register.
What governs this program?
- Code of Federal Regulation, 7 CFR Part 3560
- Title V of the Housing Act of 1949
NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.
(1) Very-low to moderate income: Very-low income is below 50% of area median income; low-income is 50-80% of area median income; moderate income is capped at $5,500 above low-income limit.