Rural Housing Service Proposes Changes to Eligibility Maps

Filed in Housing Finance, Multifamily by on March 26, 2018 0 Comments

The USDA Rural Housing Service (RHS) has proposed changes to certain areas eligible to receive financing for RHS housing programs. The changes could affect whether certain communities will still have access to Section 502 loans, which are used primarily to help low-income households buy homes.

To be eligible for RHS financing, an area must meet the definition of “rural” or qualify to be “rural in character.”

Every five years, the RHS conducts reviews of all areas under its jurisdiction to identify areas that may no longer qualify as rural for housing programs.

Proposed ineligible area maps for the USDA Rural Development Single Family Housing and Multifamily Housing programs have been posted to the USDA Income and Property Eligibility Site.

The new ineligible area maps are based on the 2017-2018 RHS review using data from the 2015 American Community Survey. The previous review was performed in 2012-2013 using the 2010 census data.

The new ineligible areas will become effective on June 4. As of that date, all properties for new applications must be located in an eligible rural area based on the new maps. However, a property in an area being changed from rural to non-rural may be approved if certain conditions are met.

For details, see the Proposed Changes to Eligibility of Certain Rural Areas. For more information, contact Curtis Milton at 800-368-5242 x8597.

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