The Rural Rental Assistance Program provides up to 25 years of rental subsidies for projects financed with mortgages from the United States Department of Agriculture (USDA) Rural Housing Services (RHS) (formerly Federal Farmers Home Administration) 515 Program. The current maximum contract term limit is 25 years, provided in successive 15 and 10 year increments.
Potential sponsors submit an application for funding to the Division of Housing and Community Renewal under the Unified Funding Process. In response to a notice that funds are available, the sponsor submits an application to RHS to determine if the project is eligible for a RHS 515 loan. A subsidy contract with the sponsor is prepared after verifying that construction is completed as outlined in the plans and specifications approved by RHS. The completion date is based upon a Certificate of Occupancy issued by a local authority or an RHS site inspection. For the past twelve years, New York State capital programs, the State's Housing Trust Fund, HOME and Low Income Housing Tax Credit Programs, have been used in conjunction with USDA 515 funds to build new projects for this program. Funded projects also receive USDA rental assistance and New York State RRAP rental assistance.
Eligible applicants include for-profit sponsors (limited dividend), non-profit corporations, Housing Development Fund Companies, Rural Preservation Companies, Public Housing Authorities, and individuals and corporations that receive RHS 515 (one percent, 30-year) permanent mortgages calculated on a fifty-year amortization schedule. Eligible areas include Title V-eligible areas, i.e., rural areas with a population less than 10,000, and up to 25,000 persons in areas with an identified lack of mortgage credit, as determined annually by RHS.
The Rural Rental Assistance Program provides direct rent subsidies to project owners for low-income elderly and family tenants residing in multifamily projects in rural areas of New York State.
The statute requires that this program operate in conjunction with low-interest mortgage financing provided by the USDA under Title V of the Housing Act of 1949.
Subsidies under the Rural Rental Assistance Program are equal to the difference between 30 percent of the tenant's monthly income and the tenant's monthly housing expenses.
Last updated on 06/16/10