Transcription of Very Low-Income Housing Repair Loans and Grants (Section …
1 Very Low-Income Housing Repair Loans and Grants (Section 504). September 2002. The Rural Housing Service (RHS) is a part of PROGRAM BASICS. Rural Development (RD) in the Department of Agriculture (USDA). It operates a broad range The Very Low-Income Housing Repair program provides Loans a nd gra nts to very Low-Income hom eow ners to re pair, of programs that were formerly administered by improve, or m odernize their dwe llings or to rem ove he alth the Farmers Home Administration to support and safety hazards. affordable Housing and community development in rural areas. RHS both provides direct Loans (made and serviced by USDA staff) and also ELIGIBLE ACTIVITIES. guarantees Loans for mortgages extended and To ob tain a loan , hom eow ner-occupants m ust be unab le to serviced by others. obtain affordable credit elsewhere and have very low incomes, defined as below 50 percent of the area median The RHS National Office is located in income.
2 They must need to make repairs and Washington, , and is responsible for setting improvem ents to m ake the dw elling more sa fe and sanitary or to re move hea lth and safety haza rds. policy, developing regulations, and performing oversight. RHS employs a central collection and Gran ts are available only to hom eow ners w ho are 62 yea rs servicing center in St. Louis, Mo. and a old or older and cannot repay a Section 504 loan. They computerized system called DLOS for Section ma y be used on ly to pay for repairs an d imp rovem ents to 502 direct and Section 504 Loans . In the field, rem ove hea lth or sa fety haza rds. RHS operations are carried out through the The regu lations provide a liberal interpre tation of ow ner.. USDA's RD offices. Each RD State Office administers programs in a state or multistate PROJECT REQUIREMENTS.
3 Area. The organization of Rural Development offices within a state varies, but typically Area or Loan s of up to $2 0,000 and gra nts of up to $7,500 a re District Offices supervise Local Offices (also available. Loans are for up to 20 years at 1 percent termed county or community development interest. A real estate mortgage is required for Loans of $2,500 or more. Full title services are required for Loans of offices) and do the processing and servicing of $7,500 or more. Gra nts m ay be recap tured if the p roperty organizational Loans and Grants . Local Offices is sold in le ss th an thre e ye ars. A gran t/loan com binatio n is process single family Housing applications, assist made if the applicant can repay part of the cost. A loan District Offices with organizational applications and a gra nt ca n be co mbined for up to $27 ,500 in and servicing, and provide counseling to assistance.
4 Applicant families and backup servicing as S t a n d a rd s needed. Repaired properties do not need to meet other RHS code requirements, bu t the installation o f wate r and w aste Rural Housing and system s and related fixtures m ust m eet loca l health Economic Development Gateway dep artm ent req uirem ents. Not a ll the health a nd safety 1-877-RURAL-26 (1-877-787-2526) hazards in a home must be removed with Section 504. www . funds, pro vided th at m ajor hea lth and sa fety hazards a re Dept of Housing & Urban Development removed. All work must meet other applicable local codes 451 7th Street, , Room 7137 and standards. Washington, DC 20410. 2 Very Low-Income Housing Repair Loans Grants September 2002. (Section 504). Approval The Rural Development local office mana ger should make a decision on an application within 30 to 60 days of receiving it if no backlog exists.
5 B a s i c I n s t ru c t io n 7 CFR Part 3550 subparts A, C, D, and E, HB-1-3550, and HB-2-3550. FOR MORE INFORMATION. For additional information on Section 502 self-help and RHS , contact the RHS N ational Office, 1400 Independ ence Avenue, , Room 5037S, Washington, 20250; 202- 720-43 23. Con tact your Rura l Developm ent Sta te Office to find out the location of the Local Office closest to you, or visit Copies of RHS. regulations are available online at v/regs. 2.
