Program 101

Are Applications Currently Being Accepted? Yes (for Debt Deferral Only)
Application Materials: (Read details on Forms & Resources tab)
Application Deadline: April 30, 2019, 5:00 pm Eastern time for pre-applications requesting Debt Deferral only.
Federal Register Correction Notice:  PDF

Technical Assistance Grants Selection Results for preserving Section 515 properties.

What does this program do?
It restructures loans for existing Rural Rental Housing and Off-Farm Labor Housing projects to help improve and preserve the availability of safe affordable rental housing for low income residents.

Who may apply for this program?
Current multi-family housing project owners with Rural Rental Housing and Off-Farm Labor Housing loans. Borrowers must continue to provide affordable rental housing for 20 years or the remaining term of any USDA loan, whichever is later.

How may funds be used?

  • Preserve and improve existing Rural Rental Housing and Off-Farm Labor Housing projects in order to extend their affordable use without displacing tenants through increased rents
  • A third party Capital Needs Assessment (CNA) will help identify project needs.

What kinds of funding are available?
A variety of restructuring tools are available including:

  • grants, limited to nonprofit applicants
  • no interest loans
  • soft-second loans
  • debt deferral

How do we get started?

  • A two-phase application process starts with pre-applications accepted on an annual basis through a Notice of Funding Availability (NOFA) in the Federal Register
  • Selected pre-applications are invited to submit final applications

Who can answer questions?
Contact your State RD office.

What governs this program?
Notice of Solicitation of Applications

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.

Forms & Resources

Pre-application for FY 2017 and 2018 (for Debt Deferral only): PDF 

MPR Debt Deferral Only Transfer Second Feasibility Scenario Limits:

The 2017 MPR NOSA allows transfer transaction applicants to submit a second feasibility scenario using multiple MPR tools in addition to their primary proposal with MPR Deferral only.  Applicants may include, at their own risk, MPR Zero Percent and/or MPR Soft Second loans in their transfer proposals.  MPR tools in the second feasibility scenario may not exceed $15,000 per unit for the MPR Zero Percent loan and $15,000 per unit for MPR Soft Second loan for a combined maximum of $30,000 for Zero Percent and Soft Second loans per unit.

 

An applicant that chooses to include MPR Zero Percent and/or MPR Soft Second loans in their transfer proposal will formally acknowledge that they understand inclusion of those funds in the underwriting constitutes neither an approval nor a commitment of any MPR funds by the Agency.

Summary of NOSA Responses -

Multi-Family Housing Underwriting Background Update (pdf) - Rural Development is pleased to announce the release of Version 6.1 of its Preliminary Assessment tool.  The Preliminary Assessment Tool, or PAT, serves as a portal of access for transfers of ownership, preservation, and similar transactions.

Preliminary Assessment Tools (xltm) -  Version 6.2 contains a number of enhancements that will continue our efforts to simplify, streamline, and provide greater transparency to the transfer and Multi-family Preservation and Revitalization (MPR) processes for the benefit of our customers and RD field staff.  Version 6.2 incorporates the provisions of the 2018 HUD Median Income.  A complete summary of the updates the PAT v6.2 are detailed in the "About This Template" page. 

Preliminary Assessment Tool Customer Comments and Questions (xlsx)

New Construction Underwriting Template (xlsm)- This standardized underwriting Template was developed for Agency underwriters and reviewers to document the terms of proposed New Construction RRH and FLH transactions after selection under the respective NOFAs. This tool is used internally to analyze the transaction proposed by the applicant and verify compliance with program requirements, standards and principles.

CNA Provider Form (pdf) - The CNA Provider Directories are available by contacting the State Architect for each state.  Please contact the state office for more information, or to submit the CNA Provider Information Form for your company.

CNA Template (xlsm) - The CNA Template Ver 1.5h should be used in lieu of all previously used versions of CNA Worksheets.  The CNA Template Ver 1.5i 52318 contained errors and should not be used.  The template documents the findings reached when using RD's Published Guidance on the Capital Needs Assessment (CNA) Process. It includes updated estimated useful life tables, and incorporates the rehabilitation guidance and miscellaneous format revisions for consistency with current program initiatives.  This form has been tested and verified using the standard Windows Microsoft Excel® (Excel 2013) to resolve compatibility issues previously reported.  Use with other operating systems such as those from Apple® or Android®, or those using earlier spreadsheet programs may continue to experience compatibility issues requiring further discussion in the CNA report.

Guidance on the Capital Needs Assessment Process (pdf) -This Unnumbered Letter (UL) addresses the Capital Needs Assessment (CNA) process for RD-financed properties. It has been updated to provide additional guidance and clarification to assist RD borrowers, providers and staff for all RD required CNA assessments for loan making and servicing.  This UL includes general instructions to be used in completing the RD CNA reports, specific instructions on how to use the expected useful life tables, and a set of applicable forms including the Terms of Reference form; Systems and Conditions forms; and Evaluator's Summary forms. This new guide is now comprised of nine main sections: 1) Definitions; 2) Contract Addendum; 3) Requirements and Statement of Work (SOW) for a CNA; 4) The CNA Review Process; 5) Guidance for the Multi-Family Housing (MFH) CNA Recipient Regarding Contracting for a CNA; 6) Revising an Accepted CNA During Underwriting; 7) Updating a CNA; 8) Incorporating a Property’s Rehabilitation into a CNA; and 9) Repair and Replacement Schedule. This entire Unnumbered Letter should be made available to RD MFH property owners, applicants and CNA Providers who are or are planning to submit transactions using the MPR or any other RD RRH or FLH program loan making or servicing authorities.  Only CNAs following this guidance will be accepted.

Multi-Family Housing Property Exit Data - The Rural Housing Service’s Multi-Family loan programs (MFH) were started in the late 1970s, and as a result, the mortgages Rural Development (RD) used to finance multifamily housing developments are coming due.  When a MHF property mortgage matures: the owner is no longer under contract to offer affordable rents to low- and moderate-income families and Rental Assistance (RA) is no longer available to support the families’ tenancy. Rural Development (RD) is acutely aware of the challenges that maturing MFH property mortgages present to the Federal Government’s important and invaluable investment in affordable rental housing for low- and moderate-income families.  RD issued an Unnumbered Letter on April 28, 2015 that describes steps a borrower can take to keep the property in the RD portfolio, including submission of an application for loan deferral under the Multi-Family Preservation and Restructuring (MPR) loan program. The linked dataset provides loan-level information when USDA Section 514 and 515 properties are projected to pay off their loans and exit USDA's Multi-Family Housing program. Other information provided includes whether the loan is prepay eligible and when, loan amount, original loan term and remaining term days, borrower characteristics, property location and characteristics, and more,

NOTE: If state specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Housing Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in your application.

 

Contacts

Map of Illinois Multi Family Housing Contacts

State Office Contact
Brenda Barr, Multi Family Housing Specialist, Champaign, IL
Tel: 217-403-66225 / Fax: 855-832-8691
Email: brenda.barr@il.usda.gov

Area Office Contacts
Christine Pratt, Area Specialist, Princeton, IL
Tel: 815-875-8732, ext. 124 / Fax: 855-833-9903
Email: christine.pratt@il.usda.gov

Sarah Borchelt, Area Specialist, Ottawa, IL
Tel: 815-433-0551, ext.130 / Fax: 855-833-9901
Email: sarah.borchelt@il.usda.gov

Mark Murphy, Area Specialist, Galesburg, IL
Tel: 309-342-5138 ext.123 / Fax: 855-832-8694
Email: mark.murphy@il.usda.gov

Sheila Maxey, Area Specialist, Champaign, IL
Tel: 217-352-3536 ext. 124 / Fax: 855-693-0301
Email: Sheila.maxey@il.usda.gov

Tracy Ashbaugh, Area Specialist, Jacksonville, IL
Tel: 217-243-1535 ext. 125 / Fax: 855-833-9896
Email: tracy.ashbaugh@il.usda.gov

Janet Fauth, Area Specialist, Marion, IL
Tel: 618-993-5396 ext. 127 / Fax: 855-833-9898
Email: janet.fauth@il.usda.gov

Renee Patton, Area Specialist, Marion, IL
Tel: 618-993-5396 ext. 131 / Fax: 855-833-9898
Email: renee.patton@il.usda.gov