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, 5

The Multi-Family Housing Rental Assistance program provides payments to owners of USDA-financed Rural Rental Housing or Farm Labor Housing projects on behalf of low-income tenants unable to pay their full rent.

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; or the owner must have a Stand-Alone Rental Assistance contract. 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.

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), is less than the basic rent for the unit; 2) who meet the occupancy rules established by the owner in accordance with 3560.155 (e); and 3) who have a signed, unexpired tenant certification form on file with the owner. Additional eligibility requirements must be met for Section 514 Farm Labor Housing Program occupancy.

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, or occupy a unit in a property with a Stand-Alone Rental Assistance contract.

Rental Assistance can only be provided for apartments in new or existing Rural Rental Housing and Farm Labor Housing financed properties. Payments are made on behalf of the tenants and become part of the property's income, which pays operational expenses. Properties with low- or very low-income tenants qualify to receive assistance. Tenants must submit income certifications annually to verify eligibility.

Rental assistance contracts shall be funded subject to the availability of funds and appropriation language.

After the application has been reviewed by the Rural Development, it is given final approval by the Leadership Designee. The Leadership Designee will determine the number of rental assistance units to be provided to the RRH project. Projects may be eligible for rental assistance for up to 100 percent of the number of units in the project.

Units of Rental Assistance are assigned based on funding availability and financial need at the property.

From 30 to 90 days from the time Form RD 3560-25, "Request for Rental Assistance" is filed.

Rental assistance contracts for new as well as existing projects may be renewed at the end of the original contract subject to Agency approval and the availability of funds.

Program participants have appeal rights (found in 7 CFR Part 11) and the option to file a grievance with the Agency (7 CFR 3560.160).