Section 538 Rural Rental Housing Guaranteed Loans
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
This program has been designed to increase the supply of affordable multifamily housing in rural areas through partnerships between Rural Development and major lending sources, as well as State and local housing finance agencies and bond insurers. The program provides Federal credit enhancement to encourage private and public lenders to make new loans for affordable rental properties that meet program standards.
Eligibility
Eligible Applicants
- Tribal Government (other)
- For-Profit Organization
- Nonprofit Organization
The applicant in this program is the lender. The lender must be approved and currently active with Fannie Mae, Freddie Mac, HUD/FHA insurance programs, Ginnie Mae or be a State or local Housing Finance Agency. A member of the Federal Home Loan Bank System or other lender may be able to participate if they can demonstrate satisfactory experience with multifamily lending.
How to Apply
Award Procedure
Rural Development will review all the applications for compliance with the program requirements and issue the Conditional Commitment of Guarantee to the lender with conditions. Once the conditions are met the final Contract Guarantee will be issued.
Decisions on applications will normally be rendered within 60-120 calendar days of receipt of a complete application.
Program details & compliance
Description
The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low-and moderate-income individuals and families in eligible rural areas and towns.
Mission Categories
Primary: Multifamily
Other categories:
Rural Housing
Use of Funds
Allowed Uses
The guarantee will encourage the construction of new or rehabilitation of existing rural rental housing and appropriate related facilities. Housing as a general rule will consist of projects with five or more dwellings.
Required Documentation
Eligible borrowers include: individual partnerships; profit and not-for-profit corporations; limited liability companies; trusts; State and local agencies; and Indian Tribes.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements