INTRODUCTION
The Rural Housing Service (RHS) is an agency in the U.S. Department of Agriculture (USDA). It operates a broad range of programs that were formerly administered by the Farmers Home Administration to support affordable housing and community development in rural areas. The RHS National Office is located in Washington, D.C., and is responsible for setting policy, developing regulations, and performing oversight. RHS employs a central computerized collection and servicing system called DLOS. RHS loans are both direct (made and serviced by USDA staff) and guaranteed for mortgages extended by others. In the field RHS operations are carried out through the USDA’s Rural Development offices. Rural Development State Offices administer programs in a state or multistate area. The organization of Rural Development offices within a state varies, but typically Area or District Offices supervise Local Offices (also termed county or community development offices) and do the processing and servicing of organizational loans and grants. Local Offices process single family housing applications, assist District Offices with organizational applications and servicing, and provide counseling to applicant families and backup servicing as needed.
RURAL HOUSING PRESERVATION GRANTS (SECTION 533)
Purpose
The Housing Preservation Grant (HPG) program provides grants to sponsoring organizations for the repair or rehabilitation of low- and very low-income housing. The grants are competitive and are made available in areas where there is a concentration of need.
Eligibility
Those assisted must own very low- or low-income housing, either as homeowners, landlords, or members of a cooperative. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI. Eligible sponsors include state agencies, units of local government, Native American tribes, and nonprofit organizations.
Terms
HPG funds received by the sponsors are combined with other programs or funds and used as loans, grants, or subsidies for recipient households based on a plan contained in the sponsor’s application. Funds must be used within a two-year period.
Standards
The property must meet locally accepted development standards or the voluntary model national standards recognized by RHS. The Secretary of Interior’s Standards for Historical Properties apply to historic properties receiving an RHS Housing Preservation Grant.
Variations
RHS regulations prohibit mixing owner-occupied preservation with that for rental or cooperative housing, although an organization may submit separate preapplications at the same time. The program may be used on rental properties when landlords agree to maintain the units for low-income use for a minimum of five years.
Approval
HPG requests are approved by the State Director.
Basic Instruction
Instruction 1944-N
ADDITIONAL INFORMATION
For additional information on Section 533 and RHS, contact the RHS National Office, 1400 Independence Avenue, S.W., Room 5037S, Washington, DC 20250; 202-720-4323. Contact your Rural Development State Office to find out the location of the Local Office closest to you. (See the “State Offices” Information Sheet for the address and telephone number of your State Office or visit https://www.rurdev.usda.gov/recd_map.html.) To obtain copies of RHS regulations, contact your Rural Development State offices or write to Rural Development, FC-313, 1520 Market Street, St. Louis, MO 63103. The regulations are also available on-line at https://rurdev.usda.gov/regs.
For a complete list of HAC’s publications, on RHS and other topics, click here and for a list of HAC Information Sheets, click here.
This Information Sheet was prepared by the Housing Assistance Council (HAC). The work that provided the basis for this publication was supported by funding from the Ford Foundation and funding under Cooperative Agreement H-5925 CA with the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.
INTRODUCTION
The Rural Housing Service (RHS) is an agency in the U.S. Department of Agriculture (USDA). It operates a broad range of programs that were formerly administered by the Farmers Home Administration to support affordable housing and community development in rural areas. The RHS National Office is located in Washington, D.C., and is responsible for setting policy, developing regulations, and performing oversight. RHS employs a central computerized collection and servicing system called DLOS. RHS loans are both direct (made and serviced by USDA staff) and guaranteed for mortgages extended by others. In the field RHS operations are carried out through the USDA’s Rural Development offices. Rural Development State Offices administer programs in a state or multistate area. The organization of Rural Development offices within a state varies, but typically Area or District Offices supervise Local Offices (also termed county or community development offices) and do the processing and servicing of organizational loans and grants. Local Offices process single family housing applications, assist District Offices with organizational applications and servicing, and provide counseling to applicant families and backup servicing as needed.
HOUSING APPLICATION PACKAGING GRANTS [SECTION 509(f)(6)]
Purpose
Section 509(f)(6) provides packaging grants to enable eligible organizations to help RHS make loans and grants in 523 counties and colonias in 26 states, Puerto Rico, the U.S. Virgin Islands, and Western Pacific Territories. Designated counties have a minimum of 10 percent occupied substandard housing and a 20 percent poverty rate. Colonias are “identifiable communities” in Arizona, California, New Mexico and Texas that are within 150 miles of the U.S. Mexico border and that lack decent water and sewage systems and decent housing.
Eligibility
States, state agencies, units of local government, and private nonprofit organizations are eligible to apply. RHS publishes an annual list of the eligible areas.
Terms
Eligible organizations must attend RHS training sessions annually and become certified or recertified as packagers.
Grant Amounts
Grant amounts vary by loan type as follows:
1. Single-family housing loans and grants (Section 502/504): $500
2. On-farm Section 514 farm labor housing loans: $500
3. Multifamily housing loans and grants (including 514/516):
|
Loan Amount |
Packaging Fee Calculation |
|
to $400,000 |
1.6 percent |
|
$400,000 – $800,000 |
add 1.2 percent |
|
$800,001 – $1,200,000 |
add 1.0 percent |
|
$1,200,001 – $1,600,000 |
add 0.7 percent |
|
$1,600,001 – $2,000,000 |
add 0.5 percent |
|
above $2,000,000 |
no additional amount |
4. Section 524 site loans: 1 percent of the loan amount
5. Section 533 Housing Preservation Grants: 2 percent of the grant amount
Reimbursement
The reimbursement schedule depends on loan type.
1. Single-family housing – payable when complete packaging requirements are met.
2. On-farm labor housing–payable when complete packaging requirements are met.
3. Section 515 and 514/516 multifamily housing–payable in three installments:
a. 25 percent at filing of complete preapplication
b. 20 percent at filing of complete application
c. Balance at loan approval from loan funds
4. Section 524–payable in two installments:
a. 30 percent after RHS review of preapplication
b. 70 percent upon completion of full docket
5. Section 533–payable in two installments:
a. 40 percent upon receipt of an AD-622 inviting a full application
b. 60 percent after grant closing
Other
State Directors will announce annually, via advertising, a request for packaging services for the applicable counties, including the number needed by program type. The same announcement will include a packaging training date. Announcements will be made some time between October 1 and December 31 each year.
Basic Instructions
Instruction 1944-B
Instruction 1940-L
ADDITIONAL INFORMATION
For additional information on Housing Application Packaging Grants and RHS, contact the RHS National Office, 1400 Independence Avenue, S.W., Room 5037S, Washington, DC 20250; 202-720-4323. Contact your Rural Development State Office to find out the location of the Local Office closest to you. (To find your state office, visit https://www.rurdev.usda.gov/recd_map.html.) To obtain copies of RHS regulations, contact your Rural Development State offices or write to Rural Development, FC-313, 1520 Market Street, St. Louis, MO 63103. The regulations are also available on-line at https://rurdev.usda.gov/regs.
For a complete list of HAC’s publications, on RHS and other topics, click here and for a list of HAC Information Sheets, click here.
This Information Sheet was prepared by the Housing Assistance Council. The work that provided the basis for this publication was supported by funding from the Ford Foundation and funding under Cooperative Agreement H-5925 CA with the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. The publisher is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.
INTRODUCTION
HUD’s Housing Counseling program, authorized under Section 106 of the Housing and Urban Development Act of 1968, allows approved organizations to provide information, assistance and counseling to prospective homebuyers, homeowners, and tenants of federally-assisted and conventionally-mortgaged housing. There are approximately 750 HUD-approved counseling agencies across the United States.
PROGRAM BASICS
Purpose: This program provides grant funds to eligible, HUD-approved housing counseling agencies to counsel homebuyers, homeowners, and tenants under HUD programs and homeowners with conventional mortgages, Department of Veterans Affairs guaranteed loans, or Farmers Home Administration mortgages. Counseling–which consists of providing information and guidance related to purchase or rental, Home Equity Conversion Mortgages, money management, budgeting, and credit counseling — is provided to assure successful homeownership or tenancy and prevent delinquencies, defaults, foreclosures, and other losses.
Eligibility: Agencies applying for a HUD housing counseling grant must first become HUD-approved counseling agencies. An applicant agency must be nonprofit (either public or private), such as a union, housing development corporation, legal service, or government agency.
Terms: Funding assistance is for a discrete period of time, usually one year. Grantees invoice HUD on a monthly basis for housing counseling services delivered during the previous month.
Comments: HUD-approved agencies compete for counseling funds. HUD announces the availability of funds through a Notice of Funding Availability (NOFA) published annually in the Federal Register, usually in the first or second quarter of the federal fiscal year in which the funds are available. Application for funds is made through a Request for Grant Application (RFGA) available from the appropriate HUD office shortly after publication of the NOFA. Grantees are expected to find additional sources of counseling and operating funding as the HUD funds can only support limited activities. Counseling services are then provided by the agency free of charge, with emphasis on low- and moderate-income households. Generally, the most frequent service provided is mortgage default counseling, followed by rental delinquency and pre- and post-occupancy counseling.
ADDITIONAL INFORMATION
For additional information contact the Director of Housing in HUD regional offices or the Chief of the Loan Management Branch in local HUD field offices or call HUD’s Single-Family Servicing Division, Secretary-Held and Counseling Services Branch in Washington, DC at (202) 708-3664.
January 2001
This Information Sheet was prepared by the Housing Assistance Council. The work that provided the basis for this publication was supported by funding from the Ford Foundation and the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.
INTRODUCTION
The Section 8 rental voucher program is the federal government’s primary program for assisting very low-income families and individuals to rent decent, safe and sanitary housing in the private market. Participating households are generally responsible for locating housing that meets program health and safety requirements and rent caps (for the certificate program). The local public housing agencies (PHAs) and tribal designated housing entities (TDHEs) that administer the programs then pay a rental subsidy directly to the landlord on behalf of the participating household. The household then pays the difference between the actual rent and the subsidy. In FY1996, HUD implemented final rules that merged many features of the certificate and voucher programs, most notably concerning the portability of certificates. On October 1, 1999, the Quality Housing and Work Responsibility Act (also known as the 1998 Housing Reform Act) went into effect. The Act completely merged the certificate and voucher programs into a single voucher program and encouraged the conversion of public housing units into vouchers (see the Code of Federal Regulations, 24CFR Part 982 for the Section 8 unified rule).
PROGRAM BASICS
Purpose: Under the new merged voucher program, a PHA or TDHE makes rental assistance payments to owners (landlords) of rental property on behalf of very low-income households for decent, safe, and sanitary housing in the private market.
Eligibility:
Applicant:Applicants for funding from HUD for both programs are limited to PHAs and TDHEs. A PHA is defined as any state, county, municipality or other governmental entity or public body (or agency or instrumentality thereof) authorized to engage in or assist in the development or operation of housing for low-income families, including TDHEs.
Beneficiary: Very low-income families (whose incomes do not exceed 50 percent of the median income for the area as determined by HUD with adjustments for family size) and, on an exception basis, low-income families (whose incomes do not exceed 80 percent of the median income for the area, adjusted for family size).
Terms:
Tenant-based leases must be for at least one-year terms; however, the PHA/TDHE may approve shorter terms. After a certificate or voucher is issued, recipients have an initial term of 60 days to find a rental unit, and the PHA may grant one or more extensions in cases where a household has difficulty locating a suitable unit. Extensions may not exceed a total of 120 days from the beginning of the initial term. Vouchers are “portable,” which means that a household may retain rental assistance if it moves anywhere in the U.S. outside the jurisdiction of the PHA/TDHE that issued the assistance, as long as the area of relocation has a PHA/TDHE administering a voucher program. However, a housing agency may require a family initially receiving a voucher to live within its jurisdiction for the first 12 months of assistance.
Comments: The 1998 Housing Reform Act has also given authority to PHA/TDHEs providing tenant-based assistance to provide homeownership purchasing assistance to eligible tenants planning to buy a dwelling unit that will be owned by one or more members of the family. The final rule for the homeownership option was issued September 12, 2000 (see the Code of Federal Regulations, 24 CFR Parts 5, 903 and 982).
As of 1993, approximately 24 percent of households receiving Section 8 assistance lived in nonmetro areas.
ADDITIONAL INFORMATION
Applicants should contact the HUD field office that has jurisdiction over the area where the program will be located. For further information contact HUD’s Office of Assisted Housing, Rental Assistance Division, in Washington, DC at 202-708-0477.
This Information Sheet was prepared by the Housing Assistance Council. The work that provided the basis for this publication was supported by funding from the Ford Foundation and the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.
INTRODUCTION
The Section 811 Supportive Housing Program for Persons with Disabilities provides funding to developers of housing for disabled, low-income households. It was created by the National Affordable Housing Act of 1990, which separated housing for people with disabilities from the Section 202 program. Section 202 now provides supportive housing for elderly persons. (See HAC’s Information Sheet on Supportive Housing for the Elderly (Section 202).)
PROGRAM BASICS
Purpose: This program provides capital advances (no-interest loans that are forgiven as long as program requirements are met for 40 years) to be used to finance the construction or rehabilitation of supportive housing for persons with disabilities, including the purchase of buildings that need little or no rehabilitation for use as group homes. Section 811 also provides project rental assistance to cover the difference between the HUD-approved operating cost per unit and 30 percent of a resident’s adjusted income.
Eligibility:
Projects are expected to start construction within 18 months of the date of fund reservation, with limited provision for extensions. Funds are advanced on a monthly basis during construction.
Comments: The Section 811 program can be used to develop three general types of housing: group homes, independent living facilities, and cooperative/condominium projects. The program does not provide funding for supportive services. Therefore, the project sponsor must demonstrate that necessary supportive services will be funded on a long-term basis. An application for a Section 811 fund reservation is made to the appropriate HUD field office in response to a Notice of Fund Availability published in the Federal Register (typically in the spring of each year). Selections are usually announced in September.
ADDITIONAL INFORMATION
For further information, contact the nearest HUD field office (see www.hud.gov/local) or HUD’s national Multifamily Housing Clearinghouse at 800-685-8470 (TTY: 800-483-2209), or visit www.hud.gov/progdesc/multindx.html.
HAC’s publications list, all information sheets, and most full-length manuals and reports may be obtained free from HAC’s web site at www.ruralhome.org. A printed copy of the publications list is available free, and copies of manuals and reports are available for a charge to cover costs, from HAC, 1025 Vermont Avenue, N.W., Suite 606, Washington, D.C. 20005; 202-842-8600.
September 2002
This Information Sheet was prepared by the Housing Assistance Council (HAC). The work that provided the basis for this publication was supported by funding from the Ford Foundation and funding under Cooperative Agreement H-5925 CA with the U.S. Department of Housing and Urban Development. The substance and finding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the government.
HAC, founded in 1971, is a nonprofit corporation that supports the development of rural low-income housing nationwide. HAC provides technical housing services, loans from a revolving fund, housing program and policy assistance, research and demonstration projects, and training and information services. HAC is an equal opportunity lender.