This program provides vouchers to protect eligible tenants in Multifamily Direct Loan properties who may face hardship when the loan on the property is prepaid, or the property is foreclosed. The amount of the voucher is equal to the difference between a tenant’s current contribution for rent, and the comparable market rent – meaning rent charged at similar complexes at non-subsidized rates – for that unit. Vouchers can be used at any property, including properties financed by Multifamily Housing.
Tenants have 10 months from the property’s pay-off or sale 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.
Applications are open on an ongoing basis!
Eligible applicants are tenants that live in properties where a USDA-financed Multifamily Housing Direct Loan ended prior to its original maturity date. 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).