Rural Rental Housing Direct Loans (515)


  • Barry Ramsey, Housing Program Director
  • USDA Rural Development
  • 2118 West Park Court, Suite A,
  • Champaign, IL 61821
  • Phone: 217-403-6222
  • Fax: 217-403-6231
  • TDD:
  • Email: ramsey@il.usda.gov
  • Website: rurdev.usda.gov/il

Purpose of the Program

The purpose of this program is to provide safe, well-built, affordable rental housing for very low, and low income individuals and families through new construction or rehabilitation of rental housing. The program is adaptable for participation by a wide variety of owners. Loans can be made to individuals, trusts, associations, partnerships, limited partnerships, State or local public agencies, consumer cooperatives, and profit or nonprofit corporations.

Who is Eligible

For-profit borrowers must agree to operate on a limited-profit basis (8 percent on initial investment). Borrowers must be unable to obtain credit elsewhere that will allow them to charge rents affordable to low- and moderate-income tenants.

Application Process

The National Office publishes a Notice of Funds Availability in the Federal Register as soon after the start of the Fiscal Year as possible. Generally, the NOFA should be published around April 1.

Availability of Funds

The maximum loan is defined in the NOFA, currently $1,000,000 per project.

How Funds are to be used

This is a direct mortgage program, but funds may also be used to buy and improve land and to provide necessary related facilities.

Types of Assistance

Loans

Year Program was established

1962