Very Low-Income Housing Repair Loans and Grants (10.417)

Program

10.417 Very Low-Income Housing Repair Loans and Grants

Federal Agency

Agency: Department of Agriculture
Office: Rural Development

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.

Program Number

10.417

Last Known Status

Active

Objectives

Section 504 loans and grants are intended to help very low-income owner-occupants in rural areas repair their properties.

Types of Assistance

DIRECT LOANS; PROJECT GRANTS

Uses and Use Restrictions

Loan funds may be used to make general repairs and improvements to properties or to remove health and safety hazards. Grant funds may be used only to pay for the costs for repairs and improvements that will remove identified health and safety hazards or to repair or remodel dwellings to make them accessible for household members with disabilities. Loans and grants are typically used for repair or replacement of heating, plumbing or electrical services, roof or basic structure as well as water and waste disposal systems, and weatherization. Loans bear an interest rate of one percent and are repaid over a period up to 20 years. In addition to the above purpose, loan funds may be used to modernize the dwelling. Maximum loan amount cannot exceed a cumulative total of $20,000 to any eligible person and maximum lifetime grant assistance is $7,500 to any eligible person. The house must be located in an eligible rural area which does not exceed 10,000 population. Some places with populations 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 Mariana's 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.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

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. Applicants must file an application form at the Rural Development field office serving the county where the dwelling is located.

Award Procedure

Delegated to Local or Area Loan Approval Official.

Deadlines

Not Applicable.

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 statutory formula.

This program has no matching requirements. 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.

MOE requirements are not applicable to this program.

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. See the following for information on how assistance is awarded/released: Contact regional office or headquarters as appropriate for additional information.

Post Assistance Requirements

Reports

Audits

No audits are required for this program.

Records

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

Program Accomplishments

Not Applicable.

Financial Information

Account Identification

12-4141-0-3-371; 12-2064-0-1-604; 12-2081-0-1-371.

Obligations

(Direct Loans) FY 08 $28,700,000; FY 09 est $34,400,000; FY 10 est $36,900,000. (Project Grants) FY 08 $30,300,000; FY 09 est $31,877,000; FY 10 est $30,000,000

Range and Average of Financial Assistance

No Data Available.

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.

Related Programs

10.410 Very Low to Moderate Income 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, Single-Family Housing Processing Division, Rural Development, Rural Housing Programs Department of Agriculture, 1400 Independence Avenue, S.W., Washington, District of Columbia 20250 Phone: (202) 720-1474

Web Site Address

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

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.