Rural Housing Site Loans and Self Help Housing Land Development Loans


To assist public or private nonprofit organizations interested in providing sites for housing; to acquire and develop land in rural areas to be subdivided as adequate building sites and sold on a cost development basis to families eligible for low and very low income loans, cooperatives, and broadly based nonprofit rural rental housing applicants.

General information about this opportunity
Last Known Status
Deleted 01/15/2013 (Archived.)
Program Number
Federal Agency/Office
Rural Housing Service, Department of Agriculture
Type(s) of Assistance Offered
E - Direct Loans
Program Accomplishments
Not applicable.
Housing Act of 1949, as amended, Sections 523 and 524, Public Law 89-117; Public Law 89-754, 42 U.S.C. 1490 (c) and (d).
Rural Housing site loans provide two types of loans to purchase and develop housing sites for low- and moderate-income families: •Section 523 loans are used to acquire and develop sites only for housing to be constructed by the Self-Help method. Refer to RD Instruction 1944-I for more information about the Self-Help program •Section 524 loans are made to acquire and develop sites for low- or moderate-income families, with no restriction as to the method of construction.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
A private or public nonprofit organization that will provide the developed sites to qualified borrowers on a cost of development basis in open country and towns of 10,000 population or less and places up to 25,000 population under certain conditions. Applicants from towns of 10,000 to 25,000 population should check with local RD office to determine if agency can serve them. Assistance is available to eligible applicants in States, Puerto Rico, the Virgin Islands, Guam, and the Northern Marianas.
Beneficiary Eligibility
Sites developed with Section 524 loans must be for housing low and very low income families and may be sold to families, nonprofit organizations, public agencies and cooperatives eligible for assistance under any Section of Title V of the Housing Act of 1949, or under any other law which provides financial assistance. Sites developed with Section 523 loans must be for housing to be built by the self-help method.
Applicants must furnish pre-application documents identified in RD Instruction 444.8 including: (1) Evidence of need for such services; (2) legal capacity to borrow funds and develop land for sale; (3) a sound budget; and (4) general project description.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. An environmental impact assessment is required for this listing. 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. This program is subject to environmental review pursuant to the National Environmental Policy Act (NEPA) of 1969.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The application will be in the form of a letter to the Rural Development Manager of the Rural Development (RD). Supporting information and costs should be included as needed.
Award Procedure
After application has been reviewed.
Not applicable.
Approval/Disapproval Decision Time
From 60 to 90 days.
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). 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. Please visit: .
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
For the purchase and development of adequate sites, including necessary equipment which becomes a permanent part of the development; for water and sewer facilities if not available; payment of necessary engineering, legal fees, and closing costs; for needed landscaping and other necessary facilities related to buildings such as walks, parking areas, and driveways. Restrictions: loan funds may not be used for refinancing of debts, payment of any fee, or commission to any broker, negotiator, or other person for the referral of a prospective applicant or solicitation of a loan; no loan funds will be used to pay operating costs or expenses of adminsitration other than actual cash cost of incidental administrative expenses if funds to pay those expenses are not otherwise available. Repayment of loan is expected within two years.
What are the requirements after being awarded this opportunity?
Not applicable.
Not applicable.
Adequate operating records must be maintained by borrower.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Not Applicable. Contact Local Rural Development Office at-
Who do I contact about this opportunity?
Regional or Local Office
Consult your local telephone directory under Department of Agriculture for Rural Development county or district office numbers or visit the website
Headquarters Office
Andria Hively
1400 Independence Avenue, SW
Washington, DC 20250 US
Phone: 360-999-0252
Website Address
Financial Information
Account Identification
(Direct Loans) FY 22$5,000,000.00; FY 23 est $5,000,000.00; FY 24 est $5,000,000.00; FY 21$5,000.00; FY 20$0.00; FY 19$0.00; FY 18$0.00; FY 17$1,000,000.00; FY 16 Estimate Not Available - (523 Site Loans) FY 24 Estimates based on the President's Budget(Direct Loans) FY 22$5,000,000.00; FY 23 est $5,000,000.00; FY 24 est $5,000,000.00; FY 21$5,000.00; FY 20$0.00; FY 19$1,800,000.00; FY 18$0.00; FY 17$0.00; FY 16 Estimate Not Available - (524 Site Loans) FY 24 Estimates based on the President's budget
Range and Average of Financial Assistance
Loan amounts vary based on proposed project size.
Regulations, Guidelines and Literature
RD Instruction 444.8, "Rural Housing Site Loan Policies, Procedures, and Authorizations"; 7 CFR 1822.261-1822.278; PA-1131.
Examples of Funded Projects
Fiscal Year 2017 Projects provided the funding for necessary infastructure to develop land for very low and low incoming housing.
Fiscal Year 2019 524 Funds will be used to install necessary infrastructure for an affordable housing development. For example streets, curbs, gutters, water and electrical taps.


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