Best Practice

USDA Section 538 Guaranteed Rural Rental Housing program

USDA Section 538 Guaranteed Rural Rental Housing program provides funding for new construction, rehab, and acquisition of multifamily rental housing, as well as buying land, infrastructure, hard and soft loan costs. Average rent must be no more than 30% of 100% AMI, and complexes must have at least 5 units. Funds flow through Fannie/Freddie/HUD/FHLB, state finance agencies, or other qualified lenders.

Cost

$$, finding a qualified fiscal agent in a local area could require significant time investment; application process for residents will be a bit more complicated than traditional mortgages, thus adding additional time as well.

Timeframe

On-going

Code

Affordable Housing, Collaboration / Partnerships, Government, New Development, Ownership, Redevelopment, Rentals

Challenge

Affordable Housing, Limited Funding

Practice Tool

Financing

Population

Developers, Renters

Setting

Rural