Very Low-Income Housing Repair Loans and Grants (10.417)
Program
10.417 Very Low-Income Housing Repair Loans and Grants
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.
Program Number
10.417
Last Known Status
Active
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. (Note: 7CFR 3550 states: "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
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 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 a maximum lifetime grant assistance is $7,500 to any eligibile person. The house must be located in an eligible rural area which does not not exceed 10,000 population. Some places with population between 10,000 and 25,000 may be eligible if not within a Metropolital 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
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
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.
Program Accomplishments
In fiscal year 2002, 4,637 loans were made and 5,460 grants were made.
Financial Information
Account Identification
(Loans) 12-4141-0-3-371; 12-2081-0-1-371; (Grants) 12-2064-0-1-604.
Obligations
(Loans) FY 02 $26,389,000; FY 03 est $32,396,000; and FY 04 est $32,396,000. (Grants) FY 02 $26,237,000; FY 03 est $30,000,000; and FY 04 est $30,000,000.
Range and Average of Financial Assistance
Loans to $5,570; Grants to $4,589.
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
Consult your local telephone directory for Rural Development county office number. If no listing, contact your Rural Development State office listed in Appendix IV of the Catalog or visit http://www.rurdev.usda.gov/recd_map.html.
Headquarters Office
Director, Single-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1474. Use the same number for FTS.
Web Site Address
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
Not applicable.
