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.
Rent for individual units is capped at 30% of 115% area median income. Average rent for an entire project (including tenant paid utilities) cannot exceed 30% of 100% of area medium income, adjusted for family size.
Applications are accepted on an ongoing basis!
Eligible lenders are automatically eligible if approved and active in one of the following programs: Fannie Mae, Freddie Mac, Ginnie Mae; HUD; Federal Home Loan Bank members; State or local housing finance agencies.
Eligible borrowers include most state and local governmental entities, nonprofit organizations, for-profit organizations, including LLC's, and Federally-recognized Tribes.
Eligible projects include construction, improvement, and purchase of multi-family rental housing complexes of at least five units in rural areas and Federally-recognized Tribal lands. Complexes may contain units that are detached, semi-detached, row houses or multi-family structures. Housing must be for low to moderate income families and individuals. Funds may also be used for buying and improving land and providing necessary infrastructure.
Lenders are automatically eligible if approved and active in certain programs
Constructed/improved/purchased complexes may contain units that are detached, semi-detached, row houses, or multi-family structures
Funds may be used to buy/improve land and provide necessary infrastructure