Very Low-Income Housing Repair Loans and Grants
Section 504 loans and grants are intended to help very low-income owner-occupants in rural areas repair their properties.
Last Known Status
Department of Agriculture, Rural Housing Service
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.
Housing Act of 1949, Title V, Section 504, as amended, Public Laws 89-117, 89-754, and 92.310, 42 U.S.C. 1474.
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.
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.
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 is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
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.
Delegated to Local or Area Loan Approval Official.
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.
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.
Applicants may reapply at any time.
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
No reports are required.
No audits are required for this program.
Borrowers and/or grantees are not required to, but should retain copies of loan or grant-related documents.
12-2081-0-1-371; 12-4141-0-3-371; 12-2064-0-1-604.
(Direct Loans) FY 12 $9,998,400; FY 13 est $24,510,951; and FY 14 est $26,300,000 - Fiscal Year 2014 estimates are based on the President's Proposed Budget. (Project Grants) FY 12 $30,315,811; FY 13 est $26,800,575; and FY 14 est $25,000,000 - Fiscal Year 2014 estimates are based on the President's Proposed Budget.
Range and Average of Financial Assistance
FY 2012 average loan amount is $5,341. FY 2012 average grant amount is $5,908.
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.
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.
Myron L. Wooden, 1400 Independence Avenue, SW, Washington, District of Columbia 20250 Email: Myron.Wooden@wdc.usda.gov
Phone: (202) 720-4780.
Examples of Funded Projects
Criteria for Selecting Proposals