The U.S. Department of Agriculture (USDA) Rural Development this week issued a final rule eliminating the requirement to publish an annual Notice of Funding Availability (NOFA) for the Multi-Family Housing Loan Guarantee Program, commonly known in the housing industry as Section 538.
This rule enables Rural Development to accept and process applications on a continuous basis, including under circumstances such as when the Federal Government operates under a continuing resolution.
This change benefits housing developers who use tax credits and other funding sources to finance properties for low-income residents. Eliminating publication of an annual NOFA will prevent scenarios in which the NOFA is published after the deadline for low-income housing tax credits or other funding programs has passed.
For additional information, see page 55034 of the October 15, 2019, Federal Register.