NAHMA Rural Update: RHS Issues Proposed Rule for Rental Assistance and Asset Management Multifamily Housing Direct Loan Programs
RHS Issues Proposed Rule for Rental Assistance and Asset Management Multifamily Housing Direct Loan Programs
Today, USDA's Rural Housing Service (RHS) published a proposed rule, “Rental Assistance and Asset Management for the Multi-Family Housing Direct Loan Programs” for public feedback. This proposed rule amends RHS regulations to implement changes related to the development of a “sustainable plan” for the Rental Assistance program, including providing RHS flexibilities in the managing of the Rental Assistance distribution and the integration of new asset management policies. The regulation changes are designed to provide flexibility, more economically utilize the Rental Assistance program, and to improve the efficiency in managing the assets in the Direct Loan portfolio.
This proposed rule establishes the historical practice of using unused Rental Assistance obligation balances from properties that have left the portfolio for renewal purposes. RHS has actively used Rental Assistance balances from properties that have paid off the Rural Development mortgage or natural maturity. These funds supplement the annual appropriation and make efficient use of inactive funds. Inclusion of this process in the regulation will increase transparency on the management of Rental Assistance funds.
Members can please submit their comments sent to NAHMA staff before 2pm(EST), on November 13, NAHMA can submit a consolidated industry comments, based on members feedback.
The Rental Assistance and Asset Management for the Multi-Family Housing Direct Loan Programs Proposed Rule can be found here.