Jennifer Emerling / There Is More Work To Be Done


USDA RD Funds Available, FY 2008

Update September 24, 2008. USDA RD has announced recipients of 2008 funds under the Rural Community Development Initiative and Housing Preservation Grant programs.

Update August 19, 2008. The NOFA for RD’s Preservation Revolving Loan Fund, which makes loans to intermediaries who then re-loan the funds to owners or purchasers of USDA-financed rental housing, was issued on August 19. This year for the first time the funds can be used for preservation of Section 514/516 farmworker housing as well as for Section 515 multifamily rental housing. Applications are due October 20.

Update July 31, 2008. USDA transfers funds to Section 502 guarantees. USDA has shifted $13 million in FY 2008 budget authority (more than $20 million in program funds) from Sections 502 direct, 514/516, 504/533, and processing workers housing to generate over $1.2 billion for Section 502 guarantees. Reps. Rubén Hinojosa (D-TX) and Lincoln Davis (D-TN) are leading an effort in the House to restore the funds in a supplemental appropriations bill.

Update July 21, 2008. RD published an amendment to its April 21Federal Register notice on the Section 538 demonstration. Rather than requiring each applicant to have received its program obligation at least one week before the deadline for its application, RD is making all applicants with obligations during FY 2008 eligible. This seems to mean that an applicant receiving its obligation on September 29 could apply on September 29 for the final round of the demo (if funds were still available).

Update April 30, 2008. RD published a notice in the April 30 Federal Register correcting the percentages of funds for the Section 502 direct and 504 programs that are available for each quarter of FY 2008.

Update April 21, 2008. As it did in 2007, RD is implementing a demonstration program for Section 538 loan guarantees that cover both construction and permanent financing. RD’s announcement in the April 21 Federal Register explains the process for Section 538 applicants to request these continuous guarantees. Those who received Section 538 obligations between October 1, 2007 and April 4, 2008 can make a request by April 25. The request deadlines for later rounds are July 11 and September 29.

Update March 28, 2008. The annual “1940-L” notice for FY 2008 regarding allocation of funds for most of USDA’s rural housing programs was published in today’s Federal Register. Deadlines (if any) and links are provided in the table below.

Update March 24, 2008. The NOFA for USDA RD’s Section 542 Voucher Program was published in today’s Federal Register. USDA has $5 million available to provide vouchers for low-income tenants in Section 515 properties whose loans are prepaid or foreclosed after September 30, 2005. A voucher can be used at the prepaid property or anywhere else in the country, provided that the landlord is willing to accept the voucher and the unit passes an RD health inspection. A voucher is for one year, with a three year limit on voucher assistance to each tenant or family. USDA will follow Section 8 regs and administrative guidance as much as possible.

Update March 12, 2008. Today’s Federal Register contains funding announcements for Section 515 new construction, Section 514/516 off-farm new construction, and the Multi-Family Housing Preservation Demonstration Program (MPR). This year for the first time MPR funds are available for Section 514/516 developments as well as Section 515. A minor correction to the Section 533 Housing Preservation Grant funding notice was also published on March 12, providing accurate contact information for the Rural Development State Office in Oregon.

USDA Rural Development funding notices published to date are summarized in the table below, and new notices will be added as they are issued.

Links to funding notices for business and utilities programs are available on USDA RD’s website, here.

Program, Link, and Publication Date


Eligible Applicants


Sec. 502 single-fam. direct (March 28 and correction April 30)


Low- and very low-income homebuyers

RD local offices

Sec. 502 single-fam. guaranteed (March 28)


Low- and very low-income homebuyers

RD local offices

Sec. 504 repair loans (March 28 and correction April 30)


Very low-income homeowners

RD local offices

Sec. 504 repair grants (March 28)


Very low-income homeowners age 62 or older

RD local offices

Sec. 515 new constr. (March 12)

May 12

Nonprofits, for-profits, indivs., prtnrshps., pub. agencies, etc.

RD state offices

Multifamily revitaliz. demo (MPR) (March 12)

May 12

Owners or purchasers of Sec. 515 or Sec. 514/516 (off-farm) rental property

Sherry Engel, 715-345-7677

Preserv. Revolving Loan Fund (Aug. 19)

Oct. 20

Nonprofits, nonprofits’ loan funds, state or local hsg. finance agencies

Henry Searcy, Jr., 202-720-1753 or Bonnie Edwards-Jackson, 202-690-0759

Sec. 514 farm labor loans (off-farm) (March 12)

May 12

Nonprofits, pub. agencies, tribes, prtnrshps w/ nonprofit GP *

RD state offices

Sec. 516 farm labor grants (off-farm) (March 12)

May 12

Nonprofits, pub. agencies, frmwrkr ass’ns, tribes

RD state offices

Farmworker housing disaster and emerg. funds (Feb. 4)

April 4

Nonprofits and public agencies

RD local offices or Henry Searcy, 202-720-1753

Farmworker housing technical assistance (Feb. 4)

March 14

Public and private nonprofits

Sue M. Harris-Green, 202-720-1604

Sec. 523 self-help tech. assistance (March 28)

Nonprofits, public agencies with existing Sec. 523 TA contracts (no new applications accepted in FY 2008)

Technical & Management Assistance Contractors
Information about partial funding of self-help TA grants in FY 2008 is available here

Sec. 523/524 site loans (March 28)


Nonprofits, public agencies, tribes

RD local offices

Sec. 306C water/waste (March 28)


Nonprofits, public agencies, tribes in Ariz., Calif., N.M., and Texas

RD local offices

Sec. 525/509 packaging (March 28)


States, state agencies, local gov’t, nonprofits

RD local offices

Sec. 533 Hsg. Preserv. Grants (Feb. 20 and correction March 12)

April 21

Nonprofits, state or local gov’t agencies, tribes

RD state offices

Sec. 538 guar. rental (Feb. 4)

April 25, then rolling while funds available

Approved lenders

RD state offices

Sec. 538 guar. demo (April 21)

April 25, July 11, Sept. 29

Approved lenders

RD state offices

Sec. 542 vouchers (March 24)


Tenants in Sec. 515 properties w/ prepaid or foreclosed mortgages

RD offices or Stephanie B.M. White, 202-720-1615

Rural Community Devel. Init. (RCDI) (Feb. 4)

May 5

Nonprofit and public intermediaries, tribes

RD state offices

Household Water Well Systems Grants (Jan. 28)

May 31


Cheryl Francis, 202-720-1937

* HAC stated incorrectly in the HAC News of March 12, 2008 and on this page that farmers were eligible for Section 514 loans for off-farm housing. Farmers are eligible for Section 514 loans for on-farm housing only, and may apply at any time. Contact an RD state office for more details. HAC apologizes for any confusion.

Posted: Feb. 20, 2008
Last updated:April 30, 2008