Together, America Prospers

Multi-Family Housing Direct Loans

Immediate Measures 

to Support Rural 

Communities Affected 

by COVID-19

• Multifamily borrowers should

reach out to their assigned

servicing staff if they are

experiencing financial hardship

due to COVID-19.

• The CDC Eviction Moratorium

has been extended through July

31, prohibiting evictions for 

tenants who cannot afford to

pay rent due to COVID-19.

• Tenant certifications that cannot 

be completed in a timely manner 

due to COVID-19 can be 

extended with no late fees or

overage charges, upon request

to the assigned servicing staff.

• Section 515 Annual Financial

Statements due March 31, 2021

may be extended for 30 days or

longer if needed, upon request

to the assigned servicing

staff (HB-2-3560 Chapter 4,

Section 4.16-H).

• Owners must process an interim 

recertification at the tenant’s 

request if there is a change to 

income of $50 or more per 

month. The owner should 

already have this policy in 

writing and apply it consistently. 

To the maximum extent 

possible, owners are

encouraged to work with all

tenants with impacted income to 

adjust rent payments.

• Temporary tenant income such

as “hazard pay” or additional

temporary unemployment

income is excluded from rent

calculations. The zero-income

certification has been waived.

What does this program do?

This program provides competitive 

financing for affordable multi-family 

rental housing for low-income, elderly, 

or disabled individuals and families in 

eligible rural areas.

Who may apply for this program?

This program assists qualified 

applicants that cannot obtain 

commercial credit on terms that will allow 

them to charge rents that are affordable 

to low-income tenants. Qualified 

applicants include:

• Individuals, trusts, associations,

partnerships, limited partnerships,

nonprofit organizations, for-profit

corporations, and consumer

cooperatives.

• Most state and local

governmental entities.

• Federally recognized Tribes.

• Borrowers must have legal authority

needed to construct, operate, and

maintain the proposed facilities and

the services proposed.

What is an eligible area? 

A list of designated eligible places is 

available from each RD State Office.

How may funds be used? 

Construction, improvement, and 

purchase of multi-family rental housing 

for low-income families, the elderly 

and disabled individuals is the primary 

objective for this program.

Funding may also be available for 

related activities including:

• Buying and improving land.

• Providing necessary infrastructure.

• For a complete list see Code of

Federal Regulations, 7CFR Part

3560.53.

Who may live in the rental housing?

• Very-low-income to moderateincome families or individuals.

• Elderly people aged 62 or older.

• People with disabilities.

What kinds of funding are available?

Direct, competitive loans.

What are the loan terms?

• Up to 30-year payback period.

• Lowest rate at either the time of loan

approval or loan closing will be used.

• Contact your local RD Office for

details and current interest rates

applicable for your project.

How do we get started?

Applications for this program are 

accepted on an annual basis. A Notice 

of Funding Availability (NOFA) is 

posted in the Federal Register.

Who can answer questions?

Contact your RD State Office or you 

can find Rural Rental Properties here 

to apply as a tenant.

What governs this program?

• Code of Federal Regulation,

7 CFR 3560

• HB-1-3560

• HB-2-3560

• Title V of the Housing Act of 1949

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated June 2021