Policy

USDA posts list of maturing multifamily mortgages

Many USDA Rural Development mortgages that financed rental properties in the rural U.S. are now approaching the end of their loan terms. When a USDA Section 515 or Section 514 mortgage matures, the property loses USDA Section 521 Rental Assistance also. That means tenants are expected to pay higher rents, even if they cannot afford the increases. More than 60 percent of these tenants are elderly or disabled and live on fixed incomes.

Rural affordable housing stakeholders are looking for ways to protect the tenants and to keep these properties affordable for low-income residents. In some situations, nonprofit organizations or other mission-oriented entities are interested in purchasing properties to keep them operating as affordable rentals. It has been difficult to know, however, which properties’ mortgages are maturing when. USDA has now published a list of properties with mortgages expiring before the end of 2019. To access the list, go to RD’s website, click the “Forms & Resources” tab, and scroll down.

“Maturing USDA Multi-family Housing Loans Will Impact Tenants,” a HAC Rural Policy Note, is available here.

Posted: November 17, 2015