HAC hosted two webinars highlighting USDA’s Section 538 Guaranteed Program in the spring of 2018. These trainings offered rural practitioners the opportunity to learn more about Section 538, and how it can be used in their communities. Scroll down to view the materials or watch the webinar recordings. 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 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.
Part I -Understanding Program Impacts on Affordable Housing 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.
Part II – Utilizing Section 538 for Preservation and Rehabilitation of Section 515 Rental Housing
This webinar, the second of the two-part series, will cover the HQs Direct Loan and Guaranteed loan divisions process for using the section 538 for the preservation and rehabilitation of section 515 rental housing. Information will be provided on process, timing and potential roadblocks. We will discuss third-party participation such as lenders and syndicate roles.