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STAKEHOLDER NOTICE: USDA Eliminates Rural Rental Housing 538 Annual NOFA Requirement

Weldon Freeman
Release Date

Applications will be Accepted on a Continuous Basis

Rural Development Donald “DJ” LaVoy today announced that USDA published a final rule to eliminate the requirement to publish an annual Notice of Funding Availability (NOFA) for the Guaranteed Rural Rental Housing Program, commonly known in the housing industry as Section 538.

The rule enables USDA to accept and process applications on a continuous basis, and under circumstances such as when the Federal government operates under a continuing resolution.

The rule also benefits developers who use tax credits to finance properties for low-income residents. Eliminating the publication of an annual NOFA will prevent scenarios in which a NOFA is published after the deadline to apply for low-income housing tax credits.

For additional information, see page 55034 of the Oct. 15, 2019, Federal Register.