FORM RD 2006-46 (Rev. 01-98)

U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.

RURAL DEVELOPMENT WSAL PN 576

Washington, D.C 20250 DATE

February 14, 2023

PROCEDURE NOTICE

RD HANDBOOK CHANGES

INSERT RD HB-1-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND

(WSAL) GRANTS – FIELD OFFICE HANDBOOK. This

Handbook is partially revised. Specific 

revisions include: 

Appendix 12, Single Family Housing Direct Programs American Rescue Plan Act (ARPA) 

Guidelines, is being added to this Handbook to provide procedures to accept and 

process loan applications from existing Section 502 and Section 504 direct loan 

borrowers, to refinance outstanding loans which are, or have been, in an approved 

COVID-19 moratorium. This Appendix reflects previous guidance as issued in a May 

12, 2021 Unnumbered Letter, with updates that include but are not limited to:

(1) Fast Track processing option. For applications which do not include capital 

improvements or repairs to be refinanced into the new loan, and/or have junior 

liens supported by an assessed value, the origination process is streamlined by 

removing and adjusting the following:

 - Appraisal requirement is removed (also applicable for certain General 

 Processing situations)

 - Title work is ordered at the beginning of the origination process (also 

 applicable for General Processing).

 - Environmental requirements are not applicable.

(2) Determining market value. The use of assessor or tax records may be used for 

determining market value for both Fast Track and General ARPA processing, except in 

certain situations when an appraisal is still required (e.g., capital improvements, 

property tax valuation shows inadequate security to include eligible junior liens 

in the refinance).

(3) Self-Help Borrowers: 

 - Regardless of moratorium status, very low- and low-income self-help borrowers 

 with permanent loans that closed in Fiscal Year (FY) 2020 or later are 

 eligible to apply for ARPA refinancing under this revised guidance.

 - Deferred Mortgage Payments. Permit Rural Housing Service to defer up to 25 

 percent of the monthly principal and interest payment at 1 percent for up to 

 15 years for qualified borrowers. The revised guidance will specifically 

 permit very low-income self-help borrowers with loans closed in FY’s 2020 or 

 later, to refinance their loans with ARPA funding, and deferred mortgage 

 assistance may be continued for up to 15 years after loan closing.

READ PROCEDURE - DISCUSS IN STAFF CONFERENCE - KEEP PROCEDURE MANUAL UP TO DATE
Page 2 ISSUED: PN 576

February 14, 2023

RD HANDBOOK CHANGES

INSERT RD HB-1-3550

(WSAL)

(4) Other Items:

 - Update to permissible packaging fees. 

 - Clarification of eligible junior liens which may be refinanced (e.g., secondary 

 financing for down payment assistance loans, forgivable loans, deferred payment 

 loans, etc.).

 - Permit refinance of UCC liens for permanent fixtures to the home (e.g., solar 

 panels), if there is adequate security value.

 - Update Terms for loans over $24,000, to permit borrower to select a 10-year 

 term as long as there is still an NTB. 

 - Clarification for borrowers with multiple loans and how they may be combined 

 (e.g., 502 & 504 into one new 502 loan, etc.).

 - Updated guidance on removing borrowers.

INSERT

Appendix 12 dated 02-14-23.

 FORM

RUS FORM 675 CERTIFICATE OF AUTHORITY. The RUS Form 675

is being updated to: (a) add in the revised 

PRA statement at the top, (b) remove requirement for electric borrowers to 

provide a board resolution, (c) make it clear that telecommunications borrowers 

must still provide board resolution, d) add in "grant" funds and e) add drop down 

menus for dates.

Changes were made due to streamlining by the Electric program and then updates to 

bring the form in line with current funding options of loans and grants.

oOo