$100 Million Available for Rural Rental Housing Through USDA

“The United States Department of Agriculture Rural Development has approximately $100 million available nationwide for the 538 Guaranteed Rural Rental Housing Program, according to Mary E. McBride, state director for Washington. The program guarantees loans made for development of affordable rental housing to low-to-moderate income tenants in rural areas. The Fiscal Year 2000 program dollars will be divided into two selection pools. The early selection pool of $40 million will close on Monday, February 21, and the standard selection pool of $60 million closes on Monday, May 8. Assistance can include both loan guarantees and interest credits. For at least 20 percent of the loans made under the program, USDA Rural Housing Service shall provide the borrower with interest credits to reduce the interest rate of the loan by a maximum of 250 basis points. RHS will provide interest credit on $1,500,000. Eligible lenders are encouraged to submit a Notice of Funds Availability response prior to the deadline, as applications will be reviewed as they are received. NOFA responses must have a minimum score of 20 points and be received by 4:00 p.m. February 21 to compete in the early selection pool. NOFA responses not scoring high, received after that date or not selected due to insufficient funds in the pool, will be retained for later NOFA closing date in the standard selection pool. Lenders have the option of submitting a combined NOFA response and application. RHS will not give preference to submissions with both response and application. This year the lender needs to provide the applicant’s completed Form RD 1940-20, Request for Environmental Information, with the NOFA response. For questions of to request an application packet, contact Joan Barry, Northwest Area Office, 1011 East Main, Suite 306, Puyallup, 98372, or call 253-845-9272 extension 119. For more information visit www.rurdev.usda.gov.”