The Rural Housing Service works with a wide variety of public and nonprofit organizations
to provide housing options to communities throughout rural America. Organizations eligible
to apply for RHS funds include local and state governmental entities; nonprofit groups,
such as community development organizations; associations, private corporations, and
cooperatives operating on a not-for-profit basis; and Federally recognized Native American
groups. The following
is information about Rural Housing Service programs of special interest to nonprofit
organizations.
Single-Family Housing
Multi-Family Housing
Development
Housing
Application Packaging Grants
Community Facilities
Single-Family Housing
Mutual Self-Help Technical Assistance
Grants
The Mutual Self-Help Housing Program
(Section 523) makes homes affordable by enabling future homeowners to work on homes
themselves. With this investment in the home, or "sweat equity", each homeowner
pays less for his or her home than if it were built by a contractor. This enabled
very-low and low-income families an opportunity to own their home.
Grants are provided to nonprofit and
local government organizations, which supervise groups of 10 to 12 enrollees in the
Self-Help Program. Members of each group help work on each other's homes, moving in only
when all the homes are completed. (Click here
for more information about options available to individual homeowners.)
Self-Help Technical Assistance Grants are available to
qualified non-profit organizations to provide technical assistance to low and very
low-income families who are building homes in rural areas through the Mutual Self-Help
Housing Program. These grant funds may be used to pay salaries, rent, and office expenses
of the not-for-profit entity.
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Rural Housing Site Loans
(Sections 523 and 524)
Rural Housing Site Loans are loans made by RHS to provide
financing for the purchase and development of affordable housing sites in rural areas for
low- and moderate-income families. Loans are made to acquire and develop sites for housing
to be constructed by the self-help method, or for site development to build a home for any
low- or moderate-income family.
Eligible organizations include nonprofit organizations,
public bodies and Federally-recognized Indian groups.
For more information about
this program, click here.
Multi-Family Housing
Development
Loans and grants are provided to finance
rental and cooperatively owned housing of modest size, design and cost for very low-,
low-, and moderate-income households. Special emphasis is placed on needs of the elderly
and handicapped. Options include:
Rural Rental Housing -
Direct Loans (Section 515)
Under the Multi-Family Housing
Direct Loan program, the Rural Housing Service makes direct loans to developers of
affordable rural multi-family rental housing. Interest rates for these programs may be
subsidized to as low as 1%. Funds can be used to construct new rental housing complexes or
to repair and rehabilitate existing units.
For more information about
this program, click here.
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Rural Rental Housing Guaranteed Loan
Program (Section 538)
This program, like the direct loan
program, is intended to fund construction of multi-family housing units to be
occupied by low-income families. The Rural Housing Service guarantees up to 90% of the
amount of a loan from a private lender to a housing developer to be used for the
construction of low-income multi family housing.
Occupants of the completed housing project
must be very low- to moderate-income households; or elderly, handicapped, or disabled
persons with income not in excess of 115% of the median income of the surrounding area.
For more information about this
program, click here.
Farm Labor Housing
Low-interest loans and grants are
made to public and nonprofit entities (or to individual farmers) for the construction of
farm labor housing. RHS is the only national entity providing funding for this use.
Farm Labor Housing Technical Assistance Grants are
provided to contractors to assist public and private nonprofit agencies to meet special
needs of farm laborers.
For more information about this
program, click here.
Housing Preservation
Grant Program (Section 533)
The Housing Preservation Grant
Program makes grants to nonprofit organizations, local governments and Native
American tribes to renovate existing low-income multifamily rental units. Funds may also
be used by recipients to help individuals make repairs to private homes.
Funds can be used to upgrade a number of individual
housing units, which in some cases affects the housing options in an entire community.
Recipients of Housing Preservation Grants are often able to leverage the funds with
additional resources from private sources or local governments.
For more information about this
program, click here.
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Housing Application Packaging
Grants
This program provides government
funds to tax-exempt public agencies and private non-profit organizations to package
applications for submission to Rural Housing Service. Packagers assist very low- and
low-income applicants with the application process by prescreening, making preliminary
eligibility determinations, ensuring the application is complete, and helping the
applicant understand the program.
Packagers receive training from
the Agency and receive a certificate to participate in the program. The certificate
qualifies the grantee to package applications for one year which ends September 30.
The packager may receive a fee to submit complete application packages to RHS.
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Community Facilities
The Rural Housing Community Facilities Program offers
direct and guaranteed loans and grants designed to finance and facilitate the development
of over 80 different types of essential community facilities serving rural areas. These
facilities include, but are not limited to, hospitals, elderly care facilities, child care
centers, fire and rescue stations, vocational and medical rehabilitation centers, schools,
and public transportation infrastructure.
Special emphasis is given to projects serving Native
American communities, Empowerment Zones, Enterprise and Champion Communities, and Pacific
Northwest Initiative Communities.
The Rural Housing Service
has assisted in the completion of thousands of successful Community Facility projects.
Community Facilities Direct Loan
Program
The Rural Housing Service makes
direct loans to nonprofit and public entities for the construction of essential
facilities. Most loans are made at below-market interest rates and are aimed at serving
financially challenged rural areas. Allowed expenses include purchase of land needed for
construction of the facility, necessary professional fees, and equipment and operating
costs.
For more information about
this program, click here.
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Community Facilities Guaranteed Loan
Program
Through this program, the Rural
Housing Service guarantees up to 90% of the amount of a loan from a private lender to a
public or nonprofit entity to be used for the construction of an essential community
facility. Many community borrowers in the Community Facilities Guaranteed Loan Program are
able to leverage loan guarantees with funds from private, state and local sources.
For more information about
this program, click here.
Community Facilities Grant Program
The Community Facilities Grant
Program is typically used to fund projects under special initiatives, such as Native
American community development efforts; child care centers linked with the Federal
government's Welfare-to-Work initiative; Federally-designated Enterprise and Champion
Communities, and the Northwest Economic Adjustment Initiative area.
In most cases, grantees are able to
leverage Community Facility funds with private and state dollars to enable completion of
more construction than might have otherwise been possible.
For more information about this
program, click here. Top of Page
To determine eligibility or to apply
for any of the programs listed above, please contact your Rural
Development State Office. |
