Rural Rental Assistance Payments


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.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Rural Housing Service, Department of Agriculture
Type(s) of Assistance Offered
C - Direct Payments For Specified Use
Program Accomplishments
Not applicable.
Housing Act of 1949, as amended, Section 521, Public Laws 90-448 and 93-128, 42 U.S.C. 1490a.
Who is eligible to apply/benefit from this assistance?
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) who meet the occupancy rules established by the borrower in accordance with 3560.155 (e); and 3) who have a signed, unexpired tenant certification form on file with the borrower. Additional eligibility requirements must be met for Section 514 Farm Labor Housing Program occupancy.
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 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.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 30 to 90 days from the time Form RD 3560-25, "Request for Rental Assistance" is filed.
Applicant may request reconsideration on the basis of pertinent facts concerning the application under the provisions of RD Instruction 1900-B.
Rental assistance contracts for new as well as existing projects may be renewed at the end of the original contract subject to the availability of funds.
How are proposals selected?
Not applicable.
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
Not applicable.
Borrowers not covered by OMB Circular No. A-133, are required to provide annual financial reports in accordance with 7 CFR 3560.308.
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
Rental assistance contracts shall be funded subject to the availability of funds and appropriation language. See above.
Who do I contact about this opportunity?
Regional or Local Office
Consult your local telephone directory under U.S. Department of Agriculture for Rural Development county or district office numbers or visit the website for a State Office listing.
Headquarters Office
Director, Multi-Family Housing Asset Management Division, Rural Housing Service
U.S. Department of Agriculture 1400 Independence Ave SW
Washington, DC 20250 USA
Phone: 202-430-3115
Website Address
Financial Information
Account Identification
(Direct Payments for Specified Use) FY 22$1,450,000,000.00; FY 23 est $1,487,926,000.00; FY 24 est $1,500,000,000.00; FY 21$1,410,000,000.00; FY 20$1,375,000,000.00; FY 19$1,331,400,000.00; FY 17$1,365,018,600.00; FY 18 est $1,395,000,000.00; FY 16$1,389,695,000.00; - (Direct Payments for Specified Use) FY 22 FY 23 FY 24 FY 21$100,000,000.00; FY 20 - American Rescue Plan additional funding for current overburdened tenants
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.
Examples of Funded Projects
Not applicable.


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