Program 101

Technical Assistance Grants Selection Results for preserving Section 515 properties.

Abbreviated Fact Sheet

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.

Who can answer questions?
Contact your RD State Office or you can find Rural Rental Properties here to apply as a tenant.

What governs this program?

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.

Forms & Resources

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.

Notice of Application Submission: The Preservation and Direct Loan Division is pleased to include our Customers as we make strides for process improvements.  The information we receive from the Notice of Application Submission form will enable us to validate our internal tracking systems, improve productivity and transparency. To Submit:  Fill in the blanks of the form, save and attach, send by email to:  PDLD@rd.usda.gov.  It is our goal to enhance communication and processing time lines to deliver outstanding customer service. 

MFH GovDelivery Subscription Link - Sign up to receive emails on MFH announcements.

MFH Property Preservation Tool - The dashboard has been updated with June 2017 maturing mortgage data, which provides loan-level information on dates when Section 514 and 515 properties are projected to pay off their loans and exit USDA's Multi-Family Housing program.  A spreadsheet containing the raw data can be accessed here.

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 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)

Engineering

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

Environmental

Rural Development environmental requirements can be found here: RD 1970 Environmental Policies and Procedures. Benefits of the 1970 environmental regulations are described here: 7 CFR 1970 Benefits.

The State Environmental Coordinator assists all Rural Development program staff, applicants, owners, and other concerned parties in meeting the Agency requirements for compliance with the National Environmental Policy Act, The National Historic Preservation Act, and other laws governing the protection of environmental and cultural resources. For more information please contact the Rural Development loan specialist servicing your area using the following link Colorado Office Contacts or the RD State Architect: Thom Sakata (720) 544-2912, or email thom.sakata@co.usda.gov. You can also visit the following sites for a complete overview:

 

Architect

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

Rural Development (RD) Programs, such as Community Facilities (CF), Rural Business Enterprise Grant (RBEG), Multi-Family Housing (MFH), involve the construction of new buildings or renovation of existing facilities. The development of these facilities involves the need for architectural services for the preparation of plans, specifications, public bidding, contracting, construction, and construction monitoring.

Applicants, at the earliest possible time, should provide a Preliminary Architectural Feasibility Report, including the cost Estimate, for the review by the RD Area Loan Specialist. These two documents are needed to determine the project's feasibility. Rural Development's State Architect will evaluate and provide architectural/construction guidance to the Applicants and their Architects, for RD financed architectural projects, in the following areas:

Initial site visit & evaluation of the proposed project
Agency concurrence of Owner/Architect Agreements
Agency acceptance of Plans & Specifications
Agency concurrence of Construction Contract documents
Construction & construction monitoring

Colorado Design Development Standards

 

Contacts

Susan McKitrick, Director Multi-Family Housing Program
DFC, Building 56, Room E-2300, PO Box 25426, Denver, CO 80225
Phone: (720) 544-2952
susan.mckitrick@co.usda.gov
Contact for State Wide and Property Development Information

Phillip Dawson, MFH State Specialist
DFC, Building 56, Room E-2300, PO Box 25426, Denver, CO 80225
Phone: (720) 544-2917
phillip.dawson@co.usda.gov
Contact for State Wide and Property Development Information

Linda Johansen, Loan Specialist
101 S. Craft Drive, Alamosa, CO 81101
Phone: (719) 589-5661 x116
linda.johansen@co.usda.gov
Servicing: Alamosa, Baca, Bent, Conejos, Crowley, Fremont, Kiowa, Otero, Prowers, Pueblo and Rio Grande

Jessica Martin, MFH Area Specialist
101 S. Craft Drive, Alamosa, CO 81101
Phone: (719) 589-5661 x119
jessica.martin@co.usda.gov
Servicing: Alamosa, Archuleta, Conejos, Costilla, Dolores, La Plata, Mineral, Montezuma, Rio Grande, Saguache, San Juan and San Miguel

Robert McElroy, MFH Area Specialist
DFC, Building 56, Room E-2300, PO Box 25426, Denver, CO 80225
Phone: (720) 544-2916
robert.mcelroy@co.usda.gov
Servicing: Adams, Arapahoe, Boulder, Douglas, El Paso, Kit Carson, Larimer, Lincoln, Logan, Morgan, Phillips, Summit, Washington and Weld

Jodi Allgood, MFH Area Specialist
690 Industrial Blvd, Delta, CO 81416
Phone: (970) 874-5735 x125
jodi.allgood@co.usda.gov
Servicing: Delta, Eagle, Garfield, La Plata, Mesa, Montezuma, Montrose, Rio Blanco and Routt

Counties with NO MFH Properties 
Clear Creek, Cheyenne, Dolores, Elbert, Gilpin, Gunnison, Hinsdale, Jackson, Jefferson, Lake, Mineral, Moffat, Ouray, Park, Pitkin, San Juan, San Miguel, Sedgwick and Yuma