Rural Development Multi-Family Housing Rural Housing Voucher Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
The Rural Housing Voucher Demonstration program is designed to provide rental housing assistance vouchers to tenants in properties that pay off their Rural Development mortgage. The amount of this subsidy is the difference between the comparable market rent and the amount of rent being paid by the tenant when pay off occurs. Pay off properties may be located anywhere in the 50 states, Puerto Rico, the U.S. Virgin Islands and Guam.
Eligibility
Eligible Applicants
- Individuals / families
- Nonprofit Organization
- For-Profit Organization
- Land/Property Owner
Applicants must (a) be residing in the Section 515 project on the date of the pay off of the Section 515 loan or upon foreclosure by Rural Development; (b) the date of the pay off or foreclosure must be after September 30, 2005; (c) as required by 42 U.S.C. 1436a the tenant must be a citizen, U.S. non-citizen national or qualified alien and will so provide proof of citizenship.
Beneficiaries
- Farmer / Rancher / Agriculture Producer
- U.S. Citizen
- Resident/Citizen of U.S. Territory
Applicants must be citizens, U.S. non-citizen nationals or qualified aliens and have an adjusted household income at or below 80 percent of area median income as determined annually by the U.S. Department of Housing and Urban Development (HUD) to be eligible for a rural housing voucher.
How to Apply
Application Procedure
Only tenants currently living in USDA RD Multifamily Housing program financed properties in which the owner has made a final loan payment qualify. Tenants have 10 months from the property’s payoff or sale date to decide whether they want to use their USDA RD voucher. The voucher holder’s initial benefit period lasts for one year, but can possibly be renewed based on the tenant’s continued eligibility and the availability of funding.
USDA Rural Development vouchers cannot be used at rental units subsidized by other housing programs, such as U.S. Housing and Urban Development (HUD) Section
8, or other public housing.
Award Procedure
During the pay off or foreclosure process, Rural Development will evaluate every tenant family to determine if it is low-income. If Rural Development determines a family is low-income, after the foreclosure or prepayment, Rural Development will send the primary tenant a letter offering the family a voucher.
Program details & compliance
Description
The Rural Development Voucher Program provides vouchers to protect eligible tenants in Multifamily Direct Loan properties who may face hardship when a final loan payment is made on the property.
Tenants that live in Multifamily Direct Loan properties at the time final payment is made.
The voucher can be used to supplement their rental payments at the former Multifamily Direct Loan property, or at any non-subsidized rental unit in the United States that meets Rural Development’s housing quality standards (provided the non-subsidized property agrees to accept the voucher).
Mission Categories
Primary: Rural Housing
Other categories:
Multifamily
Use of Funds
Allowed Uses
The monthly housing assistance payment for the Rural Development Voucher Program is the difference between the comparable market rent for the family's former Section 515 unit and the tenant's rent contributon on the date of the pay off.
Restrictions
Funds are paid directly to property owners on the tenant’s behalf.
Tenants have 10 months from the property’s final loan payment date to decide whether they want to use their Rural Development voucher. The voucher holder’s initial benefit period is one year, subject to renewal based on the tenant’s continued eligibility and funding availability. The voucher may not be used at rental units subsidized by other housing programs, such as U.S. Housing and Urban Development (HUD) Section 8, or public housing.
Required Documentation
The applicant must furnish factual evidence that their adjusted household's income is at or below 80 percent of area median income as determined annually by HUD and furnish proof of citizenship to be eligible, or to continue to be eligible, for a rural housing voucher.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
Formula
The program currently has a proposed rule in place.