Rural Rental Housing Loans are direct, competitive mortgage loans made to provide affordable multifamily rental housing for very low-, low-, and moderate-income families; the elderly; and persons with disabilities. This is primarily a direct mortgage program, but its funds may also be used to buy and improve land and to provide necessary facilities such as water and waste disposal systems.
Individuals, partnerships, limited partnerships, for-profit corporations, nonprofit organizations, limited equity cooperatives, Native American tribes, and public agencies are eligible to apply. For-profit borrowers must agree to operate on a limited-profit basis (currently 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.
Rural Development State Directors use needs criteria to establish a list of targeted communities for which applicants may request loan funds. A list of these communities is published yearly in the Federal Register in the form of a Notice of Funding Availability (NOFA). The applications are then rated competitively in order to select recipients.
The National Office publishes the NOFA as soon after the start of the Fiscal Year as possible after a budget or a continuing resolution is signed into law by the President.
The NOFA will list the information that applicants must submit in their project proposal including the criteria the Agency will use to evaluate and rank project proposals; the deadline for submitting project proposals; and the State Office addresses where the project proposals may be sent.
A list of designated places for the state may be obtained from the Agencies and Offices state map.