Rural Rental Assistance Payments (10.427)

Program

10.427 Rural Rental Assistance Payments

Federal Agency

Agency: Department of Agriculture
Office: Rural Development

Authorization

Housing Act of 1949, as amended, Section 521, Public Laws 90-448 and 93-128, 42 U.S.C. 1490a.

Program Number

10.427

Last Known Status

Active

Objectives

To reduce the tenant contribution paid by low-income families occupying eligible Rural Rental Housing (RRH), Rural Cooperative Housing (RCH), and Farm Labor Housing (LH) projects financed by the Rural Housing Service (RHS) through its Sections 515, 514 and 516 loans and grants.

Types of Assistance

DIRECT PAYMENTS FOR A SPECIFIED USE

Uses and Use Restrictions

Rental assistance may be used to reduce the rents paid by low-income senior citizens or families and domestic farm laborers and families whose rents exceed 30 percent of an adjusted annual income. Tenants who may be eligible must occupy units in eligible RRH, RCH and LH projects financed by RHS.

Eligibility Requirements

Applicant Eligibility

To be eligible to participate in the rental assistance program, borrowers must have an eligible project. All projects must convert to Interest Credit Plan II before they are eligible, except direct RRH and insured RRH loans approved prior to August 1, 1968, and LH loans and grants. For a borrower to have an eligible project, the loan must be an RRH insured or direct loan made to a broad-based nonprofit organization, or State or local agency or; an RRH insured loan made to an individual or organization who has or will agree to operate the housing on a limited profit basis as defined in 7 CFR 3560.254 (a) or; an RCH insured or direct loan or; an LH loan, or an LH loan and grant combination made to a broad-based nonprofit organization or nonprofit organization of farm workers or a State or local public agency. New construction and/or rehabilitation projects, utilizing the Section 8 program from HUD will not be considered eligible projects, although it may be used for eligible families in existing projects utilizing Section 8 for part of the units.

Beneficiary Eligibility

Any very low and low-income family, handicapped or senior citizen that is unable to pay the approved rental rate for an eligible RHS rental assistance unit within 30 percent of their adjusted monthly income. Households eligible for rental assistance are those 1) whose net tenant contribution to rent, determined in accordance with 3560.203 (a)(2), is less than the basic rent for the unit; 2) whose head of the household is a U.S. citizen or a legal alien as defined in 3560.11; 3) who meet the occupancy rules established by the borrower in accordance with 3560.155 (e); and 4) who have a signed, unexpired tenant certification form on file with the borrower.

Credentials/Documentation

The applicant must be the owner or plan to become an owner of an eligible RHS RRH,RCH, or LH project operating on a limited profit or nonprofit basis. This program is excluded from coverage under 7 CFR 3015 or 3016. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

This program is subject to environmental review pursuant to the National Environmental Policy Act (NEPA) of 1969. An environmental impact assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Eligible borrowers will initiate the processing by submitting Form RD 3560-25, "Request for Rental Assistance". Applications shall then be reviewed under the procedure set forth in 7 CFR 3560.255. This program is excluded from coverage under 7 CFR 3015 or 3016.

Award Procedure

After the application has been reviewed by the Rural Development Manager, it is given final approval by the State Director. The State Director will determine the number of rental assistance units to be given from the total of units that were allocated to the State. Projects may be eligible for rental assistance for up to 100 percent of the number of units in the project.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

From 30 to 90 days from the time Form RD 1944-25, "Request for Rental Assistance" is filed.

Appeals

Applicant may request reconsideration on the basis of pertinent facts concerning the application under the provisions of RD Instruction 1900-B.

Renewals

Rental assistance contracts for new as well as existing projects may be renewed for at the end of the original contract subject to the availability of funds.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements. The statistical factors used for fund allocation are: (1) State percentage of RHS rural population and the source is "2000 Census" updated by ERS; (2) State percentage of RHS rural housing units lacking plumbing and/or overcrowded and the source is "2000 Census"; and (3) State percentage of persons in poverty living in RHS rural areas and the source is "2000 Census.".

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Rental assistance contracts shall be funded subject to the availability of funds and appropriation language. See the following for information on how assistance is awarded/released: See above.

Post Assistance Requirements

Reports

The borrower must initially submit Form RD 3560-8, "Tenant Certification," for each tenant. Subsequent tenant certifications must be obtained annually and submitted to the Rural Development Manager. Quarterly progress reports are to be made to the Rural Development Manager during the first year of successful operation and each quarter thereafter until discontinued by the Rural Development Manager. An annual report will also be necessary. No cash reports are required. No progress reports are required. No expenditure reports are required. No performance monitoring is required.

Audits

This program is excluded from coverage under OMB Circular No. A-133. Borrowers not covered by OMB Circular No. A-133, are required to provide annual financial reports in accordance with 7 CFR 3560.308. This program is also subject to audit by the USDA Office of Inspector General. In accordance with the provisions of 7 CFR Part 3052, which implement OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," non-federal entities that receive financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-federal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 7 CFR 3052.

Records

Adequate operating records must be maintained by borrower.

Program Accomplishments

Not Applicable.

Financial Information

Account Identification

12-2002-0-1-604; 12-0137-0-1-604.

Obligations

(Direct Payments for Specified Use) FY 08 $479,000,000; FY 09 est $902,500,000; FY 10 est $1,092,000,000

Range and Average of Financial Assistance

From 30 to 90 days from the time Form RD 3560-25, "Request for Rental Assistance is filed.

Regulations, Guidelines and Literature

7 CFR Part 3560, Direct Multi-Family Housing Loans and Grants.

Related Programs

10.405 Farm Labor Housing Loans and Grants; 10.415 Rural Rental Housing Loans

Information Contacts

Regional or Local Office

See Regional Agency Offices. Consult your local telephone directory under U.S. 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

Director, Multi-Family Housing Portfolio Management Division, Rural Housing Service U.S. Department of Agriculture, Washington, District of Columbia 20250 Phone: 202-720-1615

Web Site Address

http://www.rurdev.usda.gov.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.