3.2.1 Introduction
3.2.1 Introduction aetrahan Tue, 01/24/2023 - 09:52Many rural residents face the dual problem of limited income and a chronic lack of affordable housing. Section 515 Rural Rental Housing is managed by the U.S. Department of Agriculture (USDA)1 . The Rural Housing Service (RHS) is authorized to make loans to provide rental housing for low- and moderate-income families in rural areas. Section 515 multifamily properties may have two types of units: “subsidized” and “unsubsidized.” Tenants in “unsubsidized” units pay a “basic rent” that is below market or 30% of their adjusted income, whichever is greater2 . The property may also have “subsidized” units that have a deeper subsidy either through RHS or a different source. The tenants in these units pay 30% of their income on rent3 . Tenants also receive a utility allowance4 . Though rarely used for this purpose, Section 515 loans may also be used for congregate housing for the elderly and people with disabilities.