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Multifamily Tenant Voucher Program

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What does this program do?

This program provides vouchers to protect eligible tenants in Multifamily Direct Loan properties who may face hardship when the loan on the property is prepaid, or the property is foreclosed.

Who may apply for this program?

Tenants that live in properties where a USDA-financed Multifamily Housing Direct Loan ended prior to its original maturity date.

How can tenants use the vouchers?

The voucher can be used to supplement their rental payments at the former Multifamily Direct Loan property, or at any non-subsidized rental unit in the United States that meets Rural Development’s housing quality standards (provided the non-subsidized property agrees to accept the voucher).

What is the voucher amount?

The amount of the voucher is equal to the difference between a tenant’s current contribution for rent, and the comparable market rent – meaning rent charged at similar complexes at non-subsidized rates – for that unit. For example, if an eligible tenant currently pays $300 a month and the comparable market rent is $475, the voucher amount for that tenant is $175.

Where can the vouchers be used?

Vouchers can be used at any property, including properties financed by Multifamily Housing.

Who Handles the Funds?

Funds are paid directly to property owners on the tenant’s behalf.

What are key factors for this program?

Tenants have 10 months from the property’s pay-off or sale date to decide whether they want to use their Rural Development voucher. The voucher holder’s initial benefit period is one year, subject to renewal based on the tenant’s continued eligibility and funding availability. The voucher may not be used at rental units subsidized by other housing programs, such as U.S. Housing and Urban Development (HUD) Section 8, or public housing.

What governs this program?

Multifamily Rural Development Voucher Program Guide, available at this link:

How do I get more information?

Please contact Multifamily Housing toll-free at 800-292-8293

NOTE:

Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What Governs This Program?” You may also contact our Multifamily Housing staff for assistance. You will find additional forms, resources, and program information at rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Please contact Multifamily Housing toll-free at 800-292-8293, or visit https://www.rd.usda.gov/multifamily.