The purpose of the Section 538 Guaranteed Loan Program is to increase the supply of affordable rural rental housing, it differs in some important ways from USDA’s Section 515. Section 538 focuses on partnerships between USDA and qualified lenders, whereas Section 515 loans are directly funded from USDA to nonprofit or for-profit rural housing developers. The program is operated by the U.S. Department of Agriculture’s Rural Development. The Guaranteed Rural Rental Housing (GRRH) program is delivered through USDA approved participating Lenders.
Section 538 Guaranteed loans can be used for new construction, refinance of existing GRRH loans and acquisition rehabilitation of affordable family, senior and workforce multifamily projects.
This webinar, the first in the two-part series will provide a brief overview and give an Agency historical perspective and program milestones. We will discuss the many uses of the section 538, its compatibility with LIHTCs, HOME, Bonds and other sources of funding. There will be a presentation on LIHTCs and the post-tax reform effects on the market. The webinar will further present information on eligible projects and eligible areas, we will also discuss application and timing.