FEDERAL AGENCY:

RURAL HOUSING SERVICE (RHS), DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Housing Act of 1949, Title V, Section 504, as amended, Public Laws 89-117, 89-754, and 92-310, 42 U.S.C. 1474.

OBJECTIVES:

To give very low-income rural homeowners an opportunity to make essential repairs to their homes to make them safe and to remove health hazards to the family or the community.

TYPES OF ASSISTANCE:

Project Grants. Place Cursor Here for Definition

Direct Loans. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners in rural areas to repair, improve, or modernize their dwellings or to remove health and safety hazards. Grant funds are only available to homeowners aged 62 or older who cannot repay a Section 504 Loan. This includes repairs or replacement of heating, plumbing or electrical services, roof or basic structure as well as water and waste disposal systems, and weatherization. Loans of up to $20,000 and grants of up to $7,500 or more are available. Loans are for up to 20 years at 1 percent interest. A real estate mortgage is required for loans of $7,500 or more. Full title services are required for loans of $7,500 or more. Grant funds may be used only to pay for repairs and improvements resulting in the removal of health and safety hazards. A grant/loan combination is made if the applicant can repay part of the cost. Loans and grants can be combined for up to $27,500 in assistance. The dwelling must be located in a place which is rural in character and does not exceed 10,000 population. Some places with population between 10,000 and 25,000 may be eligible if not within a Metropolitan Statistical Area (MSA). Assistance is available in States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Marianas, and the Trust Territories of the Pacific Islands.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Applicants must own and occupy a home in a rural area; and be a citizen of the United States or reside in the United States after having been legally admitted for permanent residence or on indefinite parole. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. Applicant's income may not exceed the very low-income limit set forth in RD Instructions.

Beneficiary Eligibility:   Applicants must own and occupy a home in a rural area; and be a citizen of the United States or reside in the United States after having been legally admitted for permanent residence or on indefinite parole. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for the part of the assistance received as a grant. Applicant's income may not exceed the very low-income limit set forth in RD Instructions.

Credentials/Documentation:   Evidence of ownership and verification of income and debts. Grant recipients must provide evidence of age. This program is excluded from coverage under OMB Circular No. A-87.

Pre-application Coordination:   None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.

Application Procedure:   Applicants must file an application form at the RHS/Rural Development field office serving the county where the dwelling is located. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:   Delegated to Community Development Manager.

Deadlines:   None.

Range of Approval/Disapproval Time:   From 30 to 60 days from time applications are filed if no backlog of applications exists. Applications for assistance far exceed available funding. There is generally a waiting list for funding.

Appeals:   Agency regulations providing customers with the rights for an informal review, mediation or alternative dispute resolution (ADR), or appeal to the National Appeals Division (NAD) are contained in 7 CFR Part 3550. NAD regulations are found at 7 CFR Part 11. Requests for an informal review, mediation and ADR must be received within 30 days from the date of the adverse decision. Requests for an appeal to NAD must be received within 30 days of receipt of the adverse decision.

Renewals:   Applicants may reapply at any time.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   This program has no matching requirements. This program has no statutory formula. The following basic formula criteria are to allocate program loan funds to various States: (A x .50 + B x .50)x funds available = State basic formula allocation. Where "A" is State's percentage of national number of rural occupied units; and "B" is State's percentage of national number of rural households below 50 percent of area median income. The formula for grants is: (A x 1/3 + B x 1/3 + C x 1/3)x funds available = State basic allocation. Where "C" is State's percentage of national rural population 62 years of age and older. The data source for each of these criteria are based on the latest census data available.

Length and Time Phasing of Assistance:   This assistance is available throughout the year by means of an established allocation system. Funds are usually released to borrowers/grantees as a lump sum payment for completed repairs or, as needed, for repairs in progress.

POST ASSISTANCE REQUIREMENTS:

Reports:   None.

Audits:   None.

Records:   Borrowers and/or grantees are not required to, but should retain copies of loan or grant-related documents.

FINANCIAL INFORMATION:

Account Identification:   (Loans) 12-4141-0-3-371; 12-2081-0-1-371; (Grants) 12-2064-0-1-604.

Obligations:   (Loans) FY 01 $26,389,000; FY 02 est $32,396,000; and FY 03 est $32,396,000. (Grants) FY 01 $26,237,000; FY 02 est $30,000,000; and FY 03 est $30,000,000.

Range and Average of Financial Assistance:  
FY 2015 average loan amount is $6,026. FY 2015 average grant amount is $6,132
FY 2016 average loan amount is $5,402. FY 2016 average grant amount is $6,099.

In fiscal year 2001, 4,637 loans were made and 5,460 grants were made.

REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR Part 3550, Direct Single Family Housing Loans and Grants. (no charge); Home Improvement and Repair Loans, PA-1184, no charge.

INFORMATION CONTACTS:

Regional or Local Office:   See Regional Agency Offices. Consult your local telephone directory under Department of Agriculture for Rural Development county or district office numbers or visit the website http://offices.sc.egov.usda.gov/locator/app for a State Office listing.

Headquarters Office:   Myron L. Wooden, 1400 Independence Avenue, SW, Washington, District of Columbia 20250 Email: Myron.Wooden@wdc.usda.gov Phone: (804) 287-1559.

Web Site Address:  
http://www.rurdev.usda.gov

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.