This USDA rural housing program is authorized under Section 515 of the Housing Act of 1949 (42 U.S.C. 1485). The Rural Housing Service (RHS) is permitted to make loans to provide rental housing for moderate- and low-income families in rural areas. Section 515 can also be used for congregate housing for the handicapped and elderly – though it is rarely used for that purpose. Associations, partnerships, public agencies, trusts, individuals and corporations are entitled to loans under the Section 515 program. The loans provided are subsidized with an interest credit subsidy, although the loans are made at market interest rates. The effective rate of the loan is brought to 1% because of the subsidy. Loans are amortized for up to 50 years and have terms of 30 to 50 years depending on when the loan was made.
In rural America, there is a very specific need of much more affordable rental housing. Almost 35% of the rural renters are cost burdened and are paying above 30% of their housing cost income. There are around one million rural renter households that suffer from various housing issues, among them 60% of them pay above 70% of their housing income. Almost 1.9 million people are overburdened by rent and are paying above 30% of income for rent, and there are above 900,000 renters who reside in severely or moderately inadequate housing.
The United States Department of Agriculture and its rural development mission area are the main federal agency responsible for giving assistance to our country’s small farming communities and town. Many of these needed programs are provided by the Rural Housing Service of Rural Development, which includes the Section 515 Multifamily Rural Rental Housing Loans. Learn what types of rental projects can be developed using Section 515 by attending this session by our expert speaker Paul Flogstad.
Who should attend?
Paul has been involved in the real estate industry for the past 38 years. He has been involved in sales, construction, project management, appraisal, property management and property management consulting/training. Through his consulting company, Property Management Solutions, he provides training and consulting servi... More info