32-1
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
Table of Contents
Purpose Statement ..................................................................................................................................................... 3
OIG and GAO Reports ............................................................................................................................................. 5
Account 1: Rural Housing Insurance Fund .................................................................................................................... 7
Appropriations Language.......................................................................................................................................... 7
Lead-Off Tabular Statement ..................................................................................................................................... 8
Project Statement ...................................................................................................................................................... 9
Legislative Proposal ................................................................................................................................................ 21
Geographic Breakdown of Obligations ................................................................................................................... 21
Classification by Objects ............................................................................................................................................. 28
Account 2: Rental Assistance Program ....................................................................................................................... 29
Appropriations Language........................................................................................................................................ 29
Lead-Off Tabular Statement ................................................................................................................................... 30
Project Statement .................................................................................................................................................... 31
Geographic Breakdown of Obligations ................................................................................................................... 34
Classification by Objects ............................................................................................................................................. 36
Account 3: Multi-family Housing Revitalization Program .......................................................................................... 37
Appropriations Language........................................................................................................................................ 37
Lead-Off Tabular Statement ................................................................................................................................... 37
Project Statement .................................................................................................................................................... 38
Geographic Breakdown of Obligations ................................................................................................................... 40
Classification by Objects ............................................................................................................................................. 43
Account 4: Mutual and Self-Help Housing Grants ...................................................................................................... 44
Appropriations Language........................................................................................................................................ 44
Lead-Off Tabular Statement ................................................................................................................................... 44
Project Statement .................................................................................................................................................... 45
Geographic Breakdown of Obligations ................................................................................................................... 46
Classification by Objects ............................................................................................................................................. 47
Account 5: Rural Housing Assistance Grants .............................................................................................................. 48
Appropriations Language........................................................................................................................................ 48
Lead-Off Tabular Statement ................................................................................................................................... 48
Project Statement .................................................................................................................................................... 49
Geographic Breakdown of Obligations ................................................................................................................... 51
Classification by Objects ............................................................................................................................................. 53
Account 6: Rural Community Facilities Program ....................................................................................................... 54
Appropriations Language........................................................................................................................................ 54
Project Statement .................................................................................................................................................... 55
32-2
Geographic Breakdown of Obligations ................................................................................................................... 60
Classification by Objects (Discretionary) .................................................................................................................... 67
Classification by Objects (Mandatory) ........................................................................................................................ 67
Status of Programs .................................................................................................................................................. 68
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-3
P
URPOSE STATEMENT
The Rural Housing Service’s (RHS) programs are authorized by the Housing Act of 1949 (“Housing Act” P.L. 81-
171), as amended, and the Cranston-Gonzalez National Affordable Housing Act of 1990 (P.L. 101-625). The
community facilities programs are authorized by the Consolidated Farm and Rural Development Act of 1972
(“CONACT” P.L. 92-419), as amended. The purpose of RHS programs is to implement, sustain, and advance the
provisions of Section 2 of the Housing Act, which states in part: “…the general welfare and security of the Nation
and the health and living standards of its people require housing production and related community development…
and the realization as soon as feasible of the goal of a decent home and a suitable living environment for every
American family, thus contributing to the development and redevelopment of communities and to the advancement
of the growth, wealth, and security of the Nation…”
RHS offers housing and community development programs that include Community Facilities (CF) programs to
fund essential community facilities, Single Family Housing (SFH) programs to fund individual homeownership, and
Multi-Family Housing programs (MFH) to assist low- income individuals and families in obtaining affordable, rural
rental housing.
Section 502 SFH Guaranteed Loan Program (42 U.S.C. 1472(h)) — Authorized in 1990 by the Cranston-Gonzalez
National Affordable Housing Act (P.L. 101-625), this program provides low- and moderate-income borrowers
access to mortgage credit by providing loan guarantees to agency-approved private-sector lenders. This program
currently guarantees loans at 90 percent of the loan principal.
Section 502 SFH Direct Loan Program (42 U.S.C. 1472) — Authorized by the Housing Act of 1949 (P.L. 81-171),
this program provides fixed-interest, direct loans that enable low- and very low-income families unable to obtain
credit elsewhere to purchase, build, repair or renovate modest homes in rural areas. Mortgage payments are
subsidized so as not to exceed 24 percent of a borrower’s adjusted income.
Section 504 SFH Housing Repair and Rehabilitation Loans and Grants Program (42 U.S.C. 1474) — Authorized by
the Housing Act of 1949 (P.L. 81-171), the Housing and Urban Development Act of 1965 (P.L. 89-117), and the
Demonstration Cities and Metropolitan Development Act of 1966 (P.L. 89-754), this program provides loans and
grants for very low-income and elderly borrowers who own and occupy a home in need of repairs to remove
identified health and safety hazards or to make homes accessible for household members with disabilities.
Section 523 SFH Mutual Self-Help Grants Program (42 U.S.C. 1490c) — Authorized by the Housing Act of 1949
(P.L. 81-171), the Housing and Urban Development Act of 1965 (P.L. 89-117), and the Demonstration Cities and
Metropolitan Development Act of 1966 (P.L. 89-754), this program provides two-year technical assistance grants to
allow qualified nonprofit organizations and public entities to help very low- and low-income individuals and
families work cooperatively to build their own homes by the self-help “sweat-equity” method or complete essential
repairs for very low-income homeowners.
Section 523/524 SFH Rural Housing Site Loans (42 U.S.C. 1490c and 1490d) — Authorized by Sections 523 and
524 of the Housing Act of 1949, P.L. 81-171, 523 loans are used to acquire and develop sites only for housing to be
constructed by the Self-Help method. Section 524 loans are made to acquire and develop sites for low- or moderate-
income families with no restriction as to the method of construction.
SFH Credit Sales Program — Authorized under provisions of the Housing Act 1949, P.L. 81-171, RHS offers
Section 502 direct loan financing at non-program rates and terms to buyers purchasing USDA Real Estate Owned
(REO) properties. Loan terms range from ten years for investors to a maximum of 30 years for public and private
nonprofit organizations providing transitional housing, or to purchasers intending to occupy a property.
Section 515 MFH Rural Rental Housing Direct Loans Program (42 U.S.C. 1485 and 1490a) — Authorized under the
Housing Act of 1949 (P.L. 81-171), and P.L. 102-550, this program offers direct loan financing to purchase,
construct or rehabilitate affordable rental or cooperative housing, or to develop manufactured housing projects for
very low-, low- and moderate-income residents. Funding may also be used to provide approved recreational and
service facilities appropriate for use in connection with the housing, and to buy and improve the land on which the
buildings are to be located.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-4
Section 514/516 MFH Farm Labor Housing Direct Loans and Grants Program (42 U.S.C. 1484 and 1486) —
Authorized under Title V of the Housing Act of 1949 (P.L. 81-171), Section 514 loans and Section 516 grants are
used to buy, build, improve, or repair on-farm or off-farm housing for farm laborers. All farm labor housing must be
occupied by domestic farm laborers or retirees, or individuals deriving a substantial portion of their income from
farm labor or food processing.
Section 521 MFH Rental Assistance Grant Program (RA) (42 U.S.C. 1490a) — Authorized under Title V, Section
521(a)(2) of the Housing Act of 1949 (P.L 81-171), this 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.
Section 538 MFH Guaranteed Loan Program (42 U.S.C. 1485) — Authorized under Title V, Section 538 of the
Housing Act of 1949 (P.L. 81-171), this program provides loan guarantees to qualified private-sector lenders for
loans made to eligible borrowers for the purchase, improvement, and construction of multifamily rental housing for
low- to moderate-income families and individuals in rural areas. Funding may also be used to provide necessary
infrastructure and to buy and improve land.
Section 542 MFH Rural Housing Vouchers (42 U.S.C. 1471 et seq.) — Authorized by the Housing Act of 1949
(P.L. 81-171), and P.L. 93-128, vouchers are available to provide tenant protections in Section 515 properties
prepaying mortgages after September 30, 2005, and Section 515 properties in foreclosure. Vouchers are portable and
enable residents to seek tenancy elsewhere by offsetting the rent and utility costs at other rental housing.
MFH Preservation and Revitalization (MPR) Demonstration Loans and Grants Program — It is used to restructure
loans for existing USDA Rural Rental Housing and Off-Farm Labor Housing projects to help improve and preserve
the availability of safe, affordable rental housing for low-income residents. MPR funding tools include debt deferral,
soft second loans, zero percent loans, and grants to address a project’s exigent health and safety needs.
CF Grants, Direct Loans, and Loan Guarantees (7 U.S.C. 1926) — Authorized under Section 306 of the CONACT,
and P.L. 92-419, these grants, loans, and loan guarantees provide affordable funding to develop essential community
facilities in rural areas. An essential community facility is defined as one that provides an essential service to the
local community for the orderly development of the community in a primarily rural area, and does not include
private, commercial, or business undertakings.
CF Rural Community Development Initiative Grants (RCDI) — Authorized under Section 306 of the CONACT and
governed by 2 CFR 200, this program enables public or non-profit intermediaries to provide a program of financial
and technical assistance to recipients such as low-income rural communities, community-based nonprofit
organizations, and federally recognized tribes to strengthen their capacity to assist beneficiaries in their
communities.
CF Tribal College Initiative Grants — Authorized under Section 306 of the CONACT, this program provides
funding to 1994 Land Grant institutions (Tribal Colleges) to purchase equipment and make capital improvements to
their educational facilities.
CF Technical Assistance and Training Grants Program — Authorized under Section 306 of the CONACT, this
program provides grants to public bodies and private, nonprofit corporations, (such as, but not limited to States,
Authorities, and Indian Tribes), to provide training and technical assistance (TAT) to associations which then assist
communities, Indian Tribes, and nonprofit corporations in identifying and planning for essential community facility
needs in their areas.
RD is comprised of three agencies: Rural Housing Service, Rural Utilities Service, and Business-Cooperative
Service. RD’s headquarters is located in Washington, DC. As of September 30, 2021, there were 4,615 permanent
full-time employees, including 1,277 in the headquarters office and 3,338 in the field offices.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-5
OIG AND GAO REPORTS
Table RHS-1. Completed OIG Reports
ID
Date
Title
Result
04026-0001-
21
09/24/2021
Final Action Verification – Single Family
Housing Guaranteed Loan Program –
Liquidation Value
OIG and RHS reached management
decision on all three
recommendations in the interim
report in a memorandum dated
September 11, 2018, and on the six
recommendations from the final
report in a memorandum dated
August 15, 2019. In addition, the
memoranda detailed what corrective
actions RHS needed to implement in
order to achieve final action on the
recommendations.
04601-0003-
31
02/07/2020
Multi-Family Housing Tenant Eligibility
All 10 recommendations closed
September 28, 2021.
04601-0001-
41
OIG Survey – Single Family Housing
Guaranteed Loan Program Appraisals
Survey – not an audit
Table RHS-2. In-Progress OIG Reports
ID
Title
04601-001-
24
Rural Development's Prioritization of Direct Loans and Grants for Facilities Providing Substance
Use Disorder Services
Table RHS-3. Completed GAO Reports
ID
Date
Title
Result
GAO-21-370
03/15/2021
Covid-19 Housing
Protections:
Moratoriums Have
Helped Limit Evictions,
but Further Outreach Is
Needed
No recommendations for RD
GAO-21-544
7/12/2021
COVID-19 HOUSING
PROTECTIONS:
Mortgage
Forbearance and Other
Federal Efforts Have
Reduced Default and
Foreclosure Risks
No recommendations for RD
GAO-21-578
7/30/2021
National Flood Insurance
Program: Congress
Should Consider
Updating the Mandatory
Purchase Requirement
No recommendations for RD
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-6
Table RHS-4. In-Progress GAO Reports
ID
Title
GAO-21-219
FHS, Rural Housing Service, and VA Could Better Align Program Metrics with Their Missions
104436
Compacts of Free Association Grants and Trust Funds Update
GAO-22-
104380 Mortgage Lending: Use of Alternative Data is Limited but has Potential Benefits
104701
Continuing Resolutions - OBPA is the Lead
(Scope FY 2017-2021)
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-7
A
CCOUNT 1: RURAL HOUSING INSURANCE FUND
APPROPRIATIONS LANGUAGE
The appropriations language follows (new language underscored; deleted matter enclosed in brackets):
Rural Housing Insurance Fund program account (Including Transfer of funds)
For gross obligations for the principal amount of direct and guaranteed loans as authorized by title V of the
Housing Act of 1949, to be available from funds in the rural housing insurance fund, as follows: $1,500,000,000
shall be for direct loans, $20,842,000 shall be for a Single Family Housing Relending demonstration program for
Native American Tribes, and $30,000,000,000 shall be for unsubsidized guaranteed loans;
[$28,000,000]$50,000,000 for section 504 housing repair loans; [$40,000,000]$200,000,000 for section 515
rental housing; [$230,000,000]$400,000,000 for section 538 guaranteed multi-family housing loans;
$10,000,000 for credit sales of single family housing acquired property; $5,000,000 for section 523 self-help
housing land development loans; and $5,000,000 for section 524 site development loans.
For the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of
the Congressional Budget Act of 1974, as follows: section 502 loans, [$27,900,000]$55,650,000 shall be for
direct loans; $6,857,000 shall be for a Single Family Housing Relending demonstration program for Native
American Tribes; section 504 housing repair loans, [$484,000]$4,150,000; section 523 self-help housing land
development loans, [$55,000]$267,000; section 524 site development loans, [$206,000]$208,000; and repair,
rehabilitation, and new construction of section 515 rental housing, [$3,576,000]$38,220,000: Provided, That to
support the loan program level for section 538 guaranteed loans made available under this heading the Secretary
may charge or adjust any fees to cover the projected cost of such loan guarantees pursuant to the provisions of
the Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), and the interest on such loans may not be subsidized:
Provided further, That applicants in communities that have a current rural area waiver under section 541 of the
Housing Act of 1949 (42 U.S.C. 1490q) shall be treated as living in a rural area for purposes of section 502
guaranteed loans provided under this heading. In addition, for the cost of direct loans and grants, including the
cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974
[$32,000,000]$75,000,000, to remain available until expended, for a demonstration program for the preservation
and revitalization of sections 514, 515, and 516 multifamily rental housing properties, including the restructuring
of existing USDA multi-family housing loans, as the Secretary deems appropriate, expressly for the purposes of
ensuring the project has sufficient resources to preserve the project for the purpose of providing safe and
affordable housing for low-income residents and farm laborers including reducing or eliminating interest;
deferring loan payments, subordinating, reducing or re-amortizing loan debt; and other financial assistance
including advances, payments, and incentives (including the ability of owners to obtain reasonable returns on
investment) required by the Secretary: Provided further, That the Secretary shall as part of the preservation and
revitalization agreement obtain a restrictive use agreement consistent with the terms of the restructuring:
Provided further, That any balances, including obligated balances, available for all demonstration programs for
the preservation and revitalization of sections 514, 515, and 516 multi-family rental housing properties in the
"Multi-Family Housing Revitalization Program Account" shall be transferred to and merged with this account,
and shall be available for the preservation and revitalization of sections 514, 515, and 516 multi-family rental
housing properties, including the restructuring of existing USDA multi-family housing loans: Provided further,
That following the transfer of balances described in the preceding proviso, any adjustments to obligations for
demonstration programs for the preservation and revitalization of sections 514, 515, and 516 multi-family rental
housing properties incurred in the "Multi-Family Housing Revitalization Program Account" shall be made in this
account.
In addition, for the cost of direct loans, grants, and contracts, as authorized by sections 514 and 516 of the
Housing Act of 1949 (42 U.S.C. 1484, 1486), [$12,831,000]$28,210,000, to remain available until expended, for
direct farm labor housing loans and domestic farm labor housing grants and contracts: Provided, That any
balances available for the Farm Labor Program Account shall be transferred to and merged with this account.
In addition, for administrative expenses necessary to carry out the direct and guaranteed loan programs,
$412,254,000 shall be paid to the appropriation for "Rural Development, Salaries and Expenses".
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-8
Change Description
The first change (line 3 and 4 of paragraph 1) sets the loan level requested in the budget for a Single-Family
Housing Relending program for Native American Tribes. The funding will be administered by a Community
Development Financial Institution that will work directly with the Native American Tribes.
The second change (line 3 and 4 of paragraph 2) Includes the budget authority necessary to support the requested loan
level for the Single-Family Housing Relending program for Native American Tribes.
LEAD-OFF TABULAR STATEMENT
Table RHS-5. Lead-Off Tabular Statement (In dollars)
Item
Grants
Program Level
Subsidy
Administrative
Expenses
Estimate, 2022
$10,000,000
$27,514,808,000
$70,020,000
$412,254,000
Change in Appropriation
+ 14,000,000
+ 4,899,802,000
+ 114,542,000
0
Budget Estimate, 2023
24,000,000
32,414,610,000
184,562,000
412,254,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-9
PROJECT STATEMENT
Table RHS-6. Project Statement Appropriations (thousands of dollars)
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level Inc.
or Dec.
Budget
Authority
Inc. or
Dec.
Chg
Key
Discretionary Appropriations:
Sec 502 SFH Direct Loans.....................................
$1,000,000
$90,000
$1,000,000
$55,400
$2,978,495
$55,400
$1,500,000
$55,650
-$1,478,495
+$250
(1)
SFHD Native American Relending Pilot Program
-
-
-
-
-
-
20,842
6,857
+20,842
+6,857
(2)
Sec 502 SFH Guaranteed Loans............................
24,000,000
-
24,000,000
-
24,000,000
-
30,000,000
-
+6,000,000
-
(3)
Sec 515 MFH Direct Loans...................................
40,000
12,144
40,000
6,688
74,810
6,688
200,000
38,220
+125,190
+31,532
(4)
Sec 538 MFH Guaranteed Loans..........................
230,000
-
230,000
0
230,000
-
400,000
-
+170,000
-
(5)
Sec 504 Direct Loans, Very Low.........................
18,168
3,036
16,498
1,305
128,035
2,215
50,000
4,150
-78,035
+1,935
(6)
Sec 524 Direct Site Dev Loans.............................
-
-
1,500
106
8,637
355
5,000
208
-3,637
-147
(7)
Sec 523 Self-Help Housing Land Dev Loans......
-
-
-
-
24,455
269
5,000
267
-19,455
-2
(8)
SFH Credit Sales..................................................
10,000
-
10,000
-
10,000
-
10,000
-
-
-
(9)
Sec 514 FL H Loans.............................................
28,000
8,739
27,999
5,093
50,376
5,093
50,000
10,210
-376
+5,117
(10)
Sec 516 FLH Grants.............................................
10,000
10,000
10,000
10,000
10,000
10,000
18,000
18,000
+8,000
+8,000
(11)
MFH Preservation/Revitalization Zero Interest....
-
-
-
-
-
-
79,201
34,500
+79,201
+34,500
(12)
MFH Preservation/Revitalization Soft Seconds....
-
-
-
-
-
-
70,567
34,500
+70,567
+34,500
(12)
MFH Preservation/Revitalization Grants..............
-
-
-
-
-
-
6,000
6,000
+6,000
+6,000
(12)
Administrative Expenses.......................................
-
412,254
-
412,254
-
412,254
-
412,254
-
-
Subtotal.............................................................
25,336,168
536,173
25,335,997
490,846
27,514,808
492,274
32,414,610
620,816
+4,899,802
+128,542
Mandatory Appropriations:
Sec 502 SFH Direct Loans American Rescue Plan
-
-
656,606
36,376
-
-
-
-
-
-
Sec 504 Direct Loans, Very Low American
Rescue Plan........
-
-
18,382
1,454
-
-
-
-
-
-
Administrative Expenses, American Rescue
Plan...
-
-
-
1,170
-
-
-
-
-
-
Subtotal.............................................................
-
-
674,988
39,000
-
-
-
-
-
-
Offsetting Collections:
Total Adjusted Approp.........................................
25,336,168
536,173
26,010,985
529,846
27,514,808
492,274
32,414,610
620,816
4,899,802
128,542
Add back:............................................................
Rescission, Transfers In and Out..............................
19,837
2,766
20,004
1,428
-
-
-
-
-
-
Total Appropriation............................................
25,356,005
538,939
26,030,989
531,274
27,514,808
492,274
32,414,610
620,816
4,899,802
128,542
Transfers Out:
Sec 504 direct loans, very low............................
-9,832
-1,643
-11,504
-910
-
-
-
-
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-10
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level Inc.
or Dec.
Budget
Authority
Inc. or
Dec.
Chg
Key
Sec 524 direct site dev loans...............................
-5,005
-546
-3,500
-249
-
-
-
-
-
-
Sec 523 self-help housing land dev loans...........
-5,000
-577
-5,000
-269
-
-
-
-
-
-
Total Transfers Out.........................................
-19,837
-2,766
-20,004
-1,428
-
-
-
-
-
-
Recoveries, Other ..................................................
13,736
6,753
3,625
2,483
-
-
-
-
-
-
Bal. Available, SOY..............................................
23,690
14,165
80,348
24,338
2,230,288
77,274
997,475
80,065
-1,232,813
+2,791
Total Available..................................................
25,373,594
557,091
26,094,958
556,667
29,745,096
569,548
33,412,085
700,881
3,666,989
131,333
Lapsing Balances...................................................
-931,301
-291
-1,288,492
-492
-2,165,769
-42,428
-783,880
-29,886
+1,381,889
+12,542
Transfer in Unobligated Balances (MPR 12-2002)
-
-
-
-
-
-
34,273
19,491
+34,273
+19,491
Bal. Available, EOY...............................................
-51,669
-24,338
-791,052
-77,274
-2,014,998
-80,065
-140,235
-53,652
+1,874,763
+26,413
Total Obligations................................................
24,390,624
532,462
24,015,414
478,901
25,564,329
447,055
32,522,243
636,834
+6,957,914
+189,779
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-11
Table RHS-7. Project Statement Obligations (thousands of dollars)
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level Inc.
or Dec.
Budget
Authority
Inc. or
Dec.
Discretionary Obligations:
Sec 502 SFH Direct Loans...............................................
$1,001,411
$90,127
$999,920
$55,396
$1,000,000
$18,600
$1,500,000
$55,650
+$500,000
+$37,050
SFHD Native American Relending Pilot Program..........
-
-
-
-
-
-
20,842
6,857
+20,842
+6,857
Sec 502 SFH Guaranteed Loans......................................
23,074,579
-
22,726,138
-
24,000,000
-
30,000,000
-
+6,000,000
-
Sec 515 MFH Direct Loans.............................................
40,000
12,144
38,466
6,657
40,000
3,576
200,000
38,220
+160,000
+34,644
Sec 538 MFH Guaranteed Loans.....................................
228,488
-
229,960
-
230,000
-
400,000
-
+170,000
-
Sec 504 Direct Loans, Very Low.....................................
16,643
2,780
14,797
1,170
15,665
271
50,000
4,150
+34,335
+3,879
Sec 524 Direct Site Dev Loans........................................
-
-
-
-
998
41
5,000
208
+4,002
+167
Sec 523 Self-Help Housing Land Dev Loans..................
-
-
-
-
1,000
11
5,000
267
+4,000
+256
SFH Credit Sales..............................................................
471
-
225
-
1,000
-
10,000
-
+9,000
-
Sec 514 FL H Loans.........................................................
20,095
6,220
3,084
561
15,608
1,578
50,000
10,210
+34,392
+8,632
Sec 516 FLH Grants........................................................
8,937
8,937
1,627
1,627
6,000
6,000
18,000
18,000
+12,000
+12,000
MFH Preservation/Revitalization Zero Interest...............
-
-
-
-
-
-
93,430
40,698
+93,430
+40,698
MFH Preservation/Revitalization Soft Seconds..............
-
-
-
-
-
-
73,942
36,150
+73,942
+36,150
MFH Preservation/Revitalization Grants........................
-
-
-
-
-
-
11,016
11,016
+11,016
+11,016
Administrative Expenses.................................................
-
412,254
-
412,254
-
412,254
-
412,254
-
-
Subtotal Disc oblig......................................................
24,390,624
532,462
24,014,217
477,665
25,310,271
442,331
32,437,230
633,680
+7,126,959
+191,349
Mandatory Obligations:
Sec 502 SFH Direct Loans American Rescue Plan........
-
-
1,197
66
254,000
4,724
85,013
3,154
-168,987
-1,570
Sec 504 Direct Loans, Very Low American Rescue Plan
-
-
-
-
58
-
-
-
-58
-
Administrative Expenses, American Rescue Plan..........
-
-
-
1,170
-
-
-
-
-
-
Subtotal Mand Oblig...................................................
-
-
1,197
1,236
254,058
4,724
85,013
3,154
-169,045
-1,570
Total Obligations............................................................
24,390,624
532,462
24,015,414
478,901
25,564,329
447,055
32,522,243
636,834
6,957,914
189,779
Add back:.......................................................................
Lapsing Balances................................................................
931,301
291
4,788,492
492
2,165,769
42,428
783,880
29,886
-1,381,889
-12,542
Transfer in Unobligated Balances (MPR 12-2002)............
-
-
-
-
-
-
-34,273
-19,491
-34,273
-19,491
Balances Available, EOY:
502 X-Year Low & Vlow Income..................................
633
57
1,029
57
3,065
57
1,536
57
-1,529
-
Sec 514 FL H Loans.......................................................
39,117
12,260
93,940
17,059
203,502
20,574
100,754
20,574
-102,748
-
Sec 516 FLH Grants.......................................................
11,919
11,919
22,292
22,292
26,292
26,292
26,292
26,292
-
-
Other ..............................................................................
-
102
-
102
-
102
-
102
-
-
Sec 502 SFH Direct Loans American Rescue Plan........
-
-
655,409
36,310
1,698,151
31,586
-
-
-1,698,151
-31,586
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-12
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level Inc.
or Dec.
Budget
Authority
Inc. or
Dec.
Sec 504 Direct Loans, VL American Rescue Plan........
-
-
18,382
1,454
83,988
1,454
-
-
-83,988
-1,454
MPR Zero Interest Rate.................................................
-
-
-
-
-
-
7,330
3,193
+7,330
+3,193
MPR Soft Second...........................................................
-
-
-
-
-
-
1,739
850
+1,739
+850
MPR Grants/Deferrals/Pilot Program/Modification.......
-
-
-
-
-
-
2,584
2,584
+2,584
+2,584
Total Bal. Available, EOY..................................................
51,669
24,338
791,052
77,274
2,014,998
80,065
140,235
53,652
-1,874,763
-26,413
Total Available...............................................................
25,373,594
557,091
29,594,958
556,667
29,745,096
569,548
33,412,085
700,881
3,666,989
131,333
Less:
Total Transfers Out............................................................
19,837
2,766
20,004
1,428
-
-
-
-
-
-
Recoveries, Other ..............................................................
-13,736
-6,753
-3,625
-2,483
-
-
-
-
-
-
Bal. Available, SOY...........................................................
-23,690
-14,165
-80,348
-24,338
-2,230,288
-77,274
-997,475
-80,065
1,232,813
-2,791
Total Appropriation.......................................................
25,356,005
538,939
29,530,989
531,274
27,514,808
492,274
32,414,610
620,816
4,899,802
128,542
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-13
Rural Housing Insurance Fund
Rural Housing Service is contributing towards the USDA strategic plan for the following Goal:
Goal 5: Expand Opportunities for Economic Development and Improve Quality of Life in Rural and Tribal
Communities: Objective 5.2: Boost the Financial Security of Rural and Tribal Communities through Access to
Affordable Housing Objective 5.3: Increase Capacity, Sustainability, and Economic Vitality in Rural and Tribal
Communities.
Access to affordable and safe housing is at the foundation of strong communities, healthy families and vibrant
economies. USDA is committed to ensuring that people living in rural and tribal communities have equitable and
affordable access to housing. Rural Development will improve delivery of its housing programs and resources, by
embedding key Departmental priorities such as climate and equity. This includes continuing to identify opportunities
to make housing more accessible, expanding outreach into underserved rural and tribal communities, and
committing to creating more sustainable and energy efficient housing. In doing so, Rural Development will help
keep families in rural America financially secure in their homes, especially in the face of the COVID-19
pandemic.
Affordable housing is often regarded as infrastructure because it addresses two fundamental concerns: it facilitates
business access to labor, a critical economic input, and it helps avoid costly residential alternatives that can burden
economies. The program supports this critical infrastructure by increasing housing affordability and providing
homes, both rented and owned, that improve the quality of life for rural families. As rural economies tilt less toward
agriculture and more toward service and other industry sectors, these working families are needed to sustain a local
tax base that supports a rural population that is older than its urban counterpart. The program helps to create jobs,
retain a reliable workforce, and strengthen the housing market in rural communities. The programs efficiently
address the lack of credit access in rural America for limited income rural homebuyers and investors by
guaranteeing loans that feature a uniquely affordable repayment structure.
A key component of budget increases in rural housing funding is an additional requirement that all of the housing
funding for construction or rehabilitation be targeted to projects that improve energy or water efficiency, implement
green features, including clean energy generation or building electrification, electric car charging station
installations, or address climate resilience of properties. These requirements will improve the adaptability and
resilience to climate change events. The budget includes a General Provision requiring single family housing
program and multi-family housing programs to encourage these new requirements when providing a loan or a grant.
Rural Housing Programs
The numbers and letters of the following listing relates to values in the Change Key column of the Project
Statement:
(1a) A decrease of $1,478,495,000 for Section 502 Single- Family Housing Direct Loan Program (SFHDLP)
($2,978,495,000 available in 2022).
The decrease will support a $1.5 billion in program level. Because of a decrease in subsidy rate from 2021 to
2022 the funding made available under the 2022 full year continuing resolution provided a higher program
level than was enacted in 2021. The request in the budget reflects an increase of $500 million from the 2021
enacted levels.
The direct SFH loan program is critical to achieving environmental equity and improving the quality of life in
rural America. This subsidized housing mortgage program provides essential credit access that promotes
wealth creation over time and enables rural Americans to invest in their own futures and in the future of their
communities. In 2023, this program will continue to provide homebuyers opportunities to improve their living
conditions and financial standing through investment in their own neighborhoods. It supports local jobs in
retail, services, and in residential construction that help invigorate local rural economies. It also reinforces
foundational community qualities such as stability and security that appeal to businesses seeking new locations
and opportunities for expansion. The unique servicing options available under the direct program help
borrowers facing financial setbacks and temporary challenges remain in their homes while confronting those
challenges.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-14
Mortgage interest rates remain relatively low, providing housing at more affordable levels for millions of rural
Americans through the guaranteed loan program. However, these guaranteed loans do not meet the needs of
lower income families who require the payment assistance offered through the direct program to become
successful homeowners. Without the benefit of payment assistance, many very low- and low-income
applicants are unable to meet monthly mortgage payment obligations, current low interest rates
notwithstanding.
In 2021, this program supplied over 5,350 direct loans, totaling more than $1 billion to rural families, of which
309 loans, totaling over $46.6 million, were in persistent poverty areas, focused primarily in the Southeastern
and Southern part of the U.S. Most of the loan funds went to female recipients, at approximately 59 percent
versus 40 percent male. Borrowers identifying as white make up approximately 74 percent of the recipients,
with Black/African American recipients just over 19 percent, American Indian/Alaska Native and Asian each
at less than two percent, and Native Hawaiian/Other Pacific Islander below one percent.
In February 2022, RHS published a final rule to amend its Direct Single Family Housing Loans and Grants
programs regulation. The changes to the programs will increase program flexibility, allow more borrowers to
access affordable loans, better align the programs with best practices and enable the programs to be more
responsive to economic conditions and trends. It is anticipated that the improvements to the program will
enable RHS to assist a wider population of low-and very low-income applicants to obtain decent, safe, and
sanitary single-family housing in eligible rural areas.
Because of low mortgage interest rates the program experienced high demand in 2021. The increase requested
in the 2023 budget will help to support around 7,800 loans. This program is focusing on increasing assistance
to distressed and energy communities by increasing lending in these areas.
(1b) An increase of $250,000 for a Single-Family Family Housing Direct Loan Program (SFHDLP) ($55,400.00
available in 2022).
This is the budget authority necessary to support the program level requested.
(2a) An increase of $20,842,000 for a Single-Family Housing Direct Loan Relending Program for Native American
Tribes ($0 available in 2022).
This request supports the continuation of a Native American Relending program. The 502 Relending Pilot
Program is a popular program to eligible Native American homebuyers located in tribal communities of South
Dakota and North Dakota, where USDA teams with local CDFIs. Due to a host of systemic and legal issues,
housing lending is very difficult and complex in Indian Country. The Pilot has been very successful and there
is demand for its expansion. The requested funding will expand the funding provided in 2017 to select Native
Community Development Financial Institutions (NCDFIs). These NCDFIs assist in reaching out to Native
American communities that have been traditionally underserved and will provide assistance to Native
Americans that are seeking to purchase a house.
(2b) An increase of $6,857,000 for a Single-Family Housing Relending Program for Native American Tribes ($0
available in 2022).
This is the budget authority necessary to support the program level requested.
(3) An increase of $6,000,000,000 for Section 502 Single-Family Housing Guarantee Loan Program (SFHGLP)
($24,000,000,000 available in 2022).
The section 502 SFHGLP provides low- and moderate-income rural families access to mortgage credit by
guaranteeing loans issued by agency-approved private sector lenders. These loans require no down payment,
have low up-front costs, and can finance up to 100 percent of the appraised value, plus the guaranteed fee.
Loan terms of 30 years are provided at a competitive rate that is capped by the agency. The program also
refinances higher interest, existing USDA guaranteed or direct loans. The SFHGLP continues to advance the
strategic goal of creating prosperity in rural America by addressing the critical need for credit access in rural
areas. Without the USDA loan guarantee lenders will not extend mortgage credit and tens of thousands of
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-15
creditworthy low- and moderate-income rural Americans who cannot meet down payment requirements will
not have homeownership opportunities in 2023.
Prior to 2021, the SFHGLP held steady at a program level of $24 billion, with obligations in 2016 at $16.4
billion, 2017 at $19.3 billion, 2018 at $16.8 billion, 2019 at $14.9 billion, and 2020 at $23.1 billion. The
demand for the program had a marked increase in 2020 and in 2021. In 2021, based on the obligation rates
from Q1 and Q2, the Agency requested and received an additional $6 billion because obligation rates were
approximately 20 percent above the prior year, which projected the Agency would exceed the $24 billion
funding cap. As of December 31, 2020, the SFHGLP obligated 32,823 loans for a total of $5.75 billion, an
increase of over 3,000 loans (about $1 billion) compared to the prior year during the same period. The
Secretary of Agriculture provided notice to Congress in accordance with Section 724 of Division A of the
Consolidated Appropriations Act, 2021 (Public Law 116–260). Even though the housing market conditions in
the fourth quarter of FY 2021 slowed obligations, it was still the second highest obligation total for the
program. Of the 127,389 loan guarantees provided in 2021, 40 percent of funds went to female applicants, with
86 percent of the recipients being white, and Black/African American at over eight percent, multiracial at over
one percent and Asian, American Indian/Alaska Native, Native Hawaiian/Other Pacific Islander each at under
one percent.
In 2020 and 2021 this program experienced a steady increase in demand. To preserve the increased
authorization level of $30 billion, program management actively seeks to maintain the program’s neutral
subsidy rate (or slightly negative). This enables the program to meet its mission service goals without requiring
budget authority to offset credit losses. Program demand is affected by changing macro-economic conditions.
With a total of $30 billion in lending capacity, the program will increase the number of guaranteed loans to
over 163,200. In accordance with community needs and in support of the Administration’s goals of racial
justice and equity, the program will focus on increasing assistance to distressed and underserved communities.
This includes increasing outreach to tribal and other underserved communities through targeted marketing
campaigns and diversifying approved lenders.
(4a) An increase of $125,190,000 for Section 515 Multi-family Housing Direct Loan Program ($74,810,000
available in 2022).
The requested funding will allow the agency to continue funding preservation and revitalization of existing
rental housing in USDA’s multi-family (MFH) direct loan program. Continued base funding is crucial to
ensuring the continued success of the MFH program and for building a sound portfolio that will serve rural
residents for years to come. In addition to the activities and functions specifically described in the budget
request, current year and budget year base funds will be used to carry out activities and functions consistent
with the full range of authorities and activities delegated to the agency.
Continuation of the program is crucial because:
•
The need for low and very low-income housing in rural communities is increasing. Not enough
housing is available to meet the current or projected need.
•
The portfolio is aging and revitalization funding is crucial to ensuring facilities are safe, sanitary and
available.
Rural Development’s (RD) primary program partner is the Low-Income Housing Tax Credit (LIHTC)
program, which provides private equity capital for project preservation and reduces debt service, requiring less
rental assistance to support the affordable housing. RD also is collaborating with other agencies, such as
Housing and Urban Development (HUD) and Treasury, to streamline the MFH program requirements of RD,
HUD, and LIHTC, and working with the Department of Energy to identify alternative approaches to energy
conservation. RHS will also target investment opportunities in areas of need through an emphasis on funding
rehabilitation of its rental housing in persistent poverty areas.
This funding will also target RD properties where the promissory note is maturing in an effort to retain
properties in the portfolio and enable tenants to continue living in affordable housing. Funding will also
address high poverty areas and serve to revitalize the MFH portfolio. Section 515 funding will be used in
conjunction with MFH’s Rental Assistance, Multi-family Preservation and Revitalization, and section 538
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-16
Guaranteed Loan programs. The requested increased funding for 2023 will preserve or develop 20 affordable
multi-family housing properties, totaling 1,000 units.
A key measure of the program’s effectiveness is its use of private capital to support preservation efforts. The
section 515 program leverages capital markets, particularly through the use of LIHTC, at a minimum ratio of
$2.88 dollars to every dollar of section 515 funding. In 2021, the agency obligated approximately $14 million
in Alabama. In addition, the funding is obligated across several states in 2021 that did not see funding in 2020,
including approximately $10 million obligated in Indiana.
(4b) An increase of $31,532,000 for a Multi-family Housing Direct Loan Program budget authority ($6,688,000
available in 2022).
This is the budget authority necessary to support the program level requested, and reflects a priority to invest
in the current programs at a higher level to improve access and shore up low income housing in rural areas.
The straight-lined program levels of the last 10 years has resulted in less and less assistance because of the
ever-increasing housing and building costs.
(5) An increase of $170,000,000 for Section 538 Guaranteed Multi-family Housing Loan Program ($230,000,000
available in 2022).
The section 538 Guaranteed MFH loan program promotes strategic investment in America’s housing
infrastructure by leveraging high levels of third-party funding that reduces the size of the section 538 loan in
the overall transaction, minimizing the cost of the loan to the project and the impact on tenant rents. The
primary program partner is the LIHTC program. RD partners with many State tax credit allocating agencies to
include the use of tax credits for rural rental housing preservation and construction in those States’ Qualified
Allocation Plans. For every $1 invested from the section 538 program, the agency can leverage about $2.88 of
public-private funding. Other programs do not exist to meet this critical housing need in rural America.
Two other important partners in the section 538 program are RD-approved lenders and Ginnie Mae. Lenders
provide financing through section 538 loans for new construction or rehabilitation of rural rental housing; the
financing is made possible through investment by capital markets using Ginnie Mae as a guarantor of
securities backed by the section 538 loans. The program’s delinquency rate is near zero, providing strong
evidence of the low level of risk required of RD to bring additional wealth to the community through new or
modernized rental housing.
Section 538 loans can be used for either new construction or substantial rehabilitation of existing projects.
Over the past five years, approximately half of section 538 loans have been used to revitalize existing section
515 projects, while the remaining half has been used for new construction. The level of funding in the section
538 program will help replace new construction not funded through the section 515 program, while both the
538 and preservation and revitalization programs will assist in the rehabilitation of the existing section 515
housing stock, providing affordable housing in rural America that will contribute to environmental justice.
Funding will allow RD to grow the MFH program at a pace consistent with expected program demand, as RD
continues program outreach efforts. Increased funding will allow the agency to more effectively address the
growing need for new housing and rehabilitation of existing facilities. The additional $170 million in funding
for 2023 will create 166 projects and 8,620 units, an increase of 70 projects and 3,664 units over 2022 activity.
In 2021, the agency obligated all but approximately $40,000 out of the $230 million in budget authority. The
Agency obligated 31 percent of funds for this program in California and South Carolina, with the remaining
funds obligated across 19 states and Guam.
Continuation of the program is critical because:
• It encourages investment in housing facilities for rural residents unable to afford housing at other
facilities.
• Without this program, rural homelessness could increase.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-17
(6a) A decrease of $78,035,000 for Section 504 Housing Repair Loan Program ($128,035,000 available in 2022).
The budget is proposing to fund this program at $50 million, which is a $22 million increase over the 2021
level, to further support this program. Because of a decrease in subsidy rates between 2021 and 2022, the 2022
full year Continuing Resolution has a program level that is much higher than program level provided in the
2021 appropriation of $28 million. The budget requests an increase of $22 million from the 2021 enacted level.
This increase supports the Administration’s effort to provide affordable, sustainable housing by funding repairs
to make repairs to conditions that are health or safety hazards.
Continuation of this program is critical because it provides:
• Much needed funding for rural very low-income homeowners to make essential repairs to keep their
properties decent, safe, and sanitary.
• Loans up to $20,000 that can be used to repair, modernize, or remove health and safety hazards from
rural homes. Loans are amortized at 1 percent for up to 20 years.
• Support of USDA’s Strategic Goal to create prosperity that fosters self-sustaining, repopulating, and
economically thriving rural communities.
The agency obligated funding across almost every state plus Guam and Puerto Rico in 2021. Additionally, the
Agency obligated funds for 142 loans in persistent poverty areas, an additional two loans in Colonias persistent
poverty areas, and five loans in underserved areas. The requested increase in $22 million would support
approximately 3,340 more loans at the current average loan amount of $6,586.
(6b) An increase of $1,935,000 for Section 504 Single-Family Housing Repair Loan Program budget authority
($2,215,000 available in 2022).
This is the budget authority necessary to support the program level requested and reflects a priority to invest in
the current programs at a higher level to improve access and shore up low-income housing in rural areas. The
straight-lined program levels of the last 10 years has resulted in less and less assistance because of the ever-
increasing housing and building costs.
(7a) A decrease of 3,637,000 for Section 524 Housing Site Development ($8,637,000 available in 2022).
The budget is proposing to fund this program at $5 million, the same level as in 2021. Because of a decrease in
subsidy rates between 2021 and 2022, the 2022 full year Continuing Resolution has a program level that is
much higher than program level provided in the 2021 appropriation of $5 million.
Base funding for the section 524 direct site development loan program provides loans to non-profit entities to
purchase and develop land that will be subdivided into adequate building sites and sold on a non-profit basis to
low-income families.
RHS will seek opportunities to expand participation in the program, which had little demand in recent years
because of the two-year loan repayment requirement. This requirement can cause delinquencies when site
development and lot sales cannot be completed within the two-year timeframe, discouraging program use.
RHS is exploring remedies to promote greater interest in the program and ensure more affordable home sites
are available to lower income families in rural areas. Changes are expected to benefit non-profit groups
developing SFH sites and the rural families they serve. There were no obligations associated with this program
in 2021. Reasonable interest rates in the conventional marketplace meant potential applicants have frequently
relied on other credit sources.
(7b) A decrease of $147,000 in budget authority ($355,000 available in 2022).
The decrease in budget authority reflects a decrease in subsidy rate for this program. The requested budget
authority is necessary to support the requested program level.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-18
(8a) A decrease of $19,455,000 for Section 523 Housing Land Development Program ($24,455,000 available in
2022).
The budget is proposing to fund this program at $5 million, the same level as in 2021. Because of a decrease in
subsidy rates between 2021 and 2022, the 2022 full year Continuing Resolution has a program level that is
much higher than program level provided in the 2021 appropriation, of $5 million.
Section 523 self-help RHS loans provide funds to non-profit entities to purchase and develop land to be
subdivided into adequate building sites and sold on a non-profit basis to low-income families who will
construct their homes through the self-help method.
The program provides a convenient option for residential development financing, which is not always available
to non-profit groups working in rural areas. Many self-help providers use HUD’s Self-Help Opportunity
Program (SHOP) funds for land development. However, SHOP funds may be reduced or eliminated, leaving
many self-help providers with no source of funding for land purchase or development.
The program has had limited demand in recent years. There were no obligations associated with this program
in 2021. The short (two-year) term of these loans does not provide adequate time for non-profit developers
both to complete all work needed to convert properties to suitable home sites with supporting facilities and
then to market the lots to participants in the self-help program. No loans have been approved in the past several
years.
As a result of this low program performance, RHS is exploring alternatives to promote increased interest in the
program and ensure more affordable home sites are made available to lower income families in rural areas.
These enhancements will also help the mutual self-help housing sponsor agencies more effectively leverage
program capabilities.
(8b) A decrease of $2,000 for Section 523 Housing Land Development Program Direct Loan Program budget
authority ($269,000 available in 2022).
This is the budget authority necessary to support the program level requested.
(9) No change for Credit Sales of Acquired Property-Single-Family Housing Program ($10,000,000 available in
2022).
This base funding assists RHS with the sale of real estate owned (REO) properties. Because USDA already
owns these properties no cash is required for this funding. The base of $10 million fully supports or exceeds
any expected seller-financed sales of REO properties. This non-program credit sales funding is essential to
assure the success of the combined agencies in ensuring REO properties are made available to homebuyers in
rural areas. In addition to the activities and functions noted above, all funds are used to carry out activities and
functions consistent with the full range of authorities and activities delegated to the agency.
With this program, the agency can offer SFH funding at non-program, but competitive, loan terms. This credit
is offered for buyers not eligible for section 502 assistance or for properties that do not qualify as a program
property. Funding allows agency staff to expedite the sale and disposition of REO properties, which spares the
government the cost of maintaining these properties.
REO volume is difficult to predict, and investor appetite for program funding can vary widely from one year
to the next. In 2021, the Agency obligated $225 thousand for this program, which was a decrease from $471
thousand in 2020; all funds in 2021 were obligated in Arizona.
An agreement finalized in 2015 with the Department of Veterans Affairs (VA) to use their contract for the
management and sale of certain REO properties is expected to greatly benefit RHS. The service provider
working with VA demonstrated the ability to effectively market and dispose of properties similar to those in
the USDA inventory.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-19
(10a) A decrease of $376,000 for Section 514 Farm Labor Housing Loan Program ($50,376,000 available in 2022).
The budget is proposing to fund this program at $50 million, an increase of $22 million from the 2021 level.
Because of a decrease in subsidy rates between 2021 and 2022, the 2022 full year Continuing Resolution has a
program level that is higher than program level provided in the 2021 appropriation of $28 million. The budget
requests an increase of $22 million from the 2021 enacted amount of $28 million The budget is focusing on
providing safe and affordable multifamily housing and RD is expecting to be able to deliver this level of
support.
Base funding for the section 514 farm labor housing loans will allow the agency to continue providing decent,
safe, and sanitary housing for farmers for small, on-farm housing or off-farm MFH developments.
Continuation of the program is critical because:
• It provides a safe environment for hard-working residents in rural America.
• It fosters the growth of families, communities, and the economy.
Base funding supports new construction and rehabilitation of farmworker rural rental housing and provides
support to communities with agricultural or food processing industries as they work to increase local economic
prosperity.
The use of third-party funds and section 516 farm labor housing grants provide additional leverage to minimize
the cost of new construction and allows the projects to maintain rents at affordable levels. A key program used
to access capital markets to leverage RD’s sections 514 and 516 funding is the LIHTC program. A few States
also provide assistance through grant programs designed to attract farm labor housing development
opportunities; RD works very closely with those States to coordinate efforts. For each dollar invested RHS
leveraged 0.23 dollars.
Base funding supports RD’s objective to provide decent, safe, and affordable housing to rural residents
residing in MFH facilities and to create thriving communities. In 2021, the Agency obligated just over $3
million, with most of the funds being obligated in Wisconsin. The timing of the 2021 514/516 NOSA resulted
in unobligated funds; however, these funds were eligible for carry-over and should incur obligations in 2022.
The combined additional $22 million in loans and $8 million in grants for Farm Labor Housing will allow
existing Farm Labor Housing projects funded in prior years but currently unable to proceed to construction due
to COVID-related cost increases. This additional funding for loans and grants will allow construction to
commence on 150 to 200 Farm Labor Housing units where critical market demand has been established, and
all other necessary funding is in place to proceed. These properties will be developed using energy efficient
standards, resulting in long term sustainability through more stable operating expenses and enhanced
affordability of tenant rents. The funding will also provide resources for existing Farm Labor Housing
properties in need of capital to perform critical physical repairs.
(10b) An increase of $5,117,000 for Section 514 Farm Labor Housing Direct Loan Program budget authority
($5,093,000 available in 2022).
This is the budget authority necessary to support the program level requested and reflects a priority to invest in
the current programs at a higher level to improve access and shore up low-income housing in rural areas. The
straight-lined program levels of the last 10 years has resulted in less and less assistance because of the ever-
increasing housing and building costs.
(11) An increase of $8,000,000 for Section 516 Farm Labor Housing Grants ($10,000,000 available in 2022).
Base funding for the section 516 farm labor housing grant program will provide farmworkers with decent, safe,
and sanitary housing for off-farm MFH farm labor housing developments.
Section 516 grants are limited to off-farm housing and RHS typically provides a combination of section 514
loans (mentioned above) and section 516 grants to fund these projects. Section 516 grants are critical to off-
farm MFH because they reduce the amount of debt service, reducing project expenses and the amount of rental
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-20
assistance needed to support the project. In 2021, $1.6 million in obligated funds went towards a grant in
Washington. As with the Section 514 funding, the timing of the NOSA affected obligations, but these funds
are eligible for carry-over and should incur obligations in 2022.
(12a) A net increase of $155,768,000 for Section 515 Multi-family Housing Preservation and Revitalization
program ($0 available in 2022) This program was funded in the Multi-family Preservation and Revitalization
program in 2022 ($28,000,000 available in 2022).
The multi-family housing revitalization activities are being transferred from the Multifamily Housing
Revitalization Program Account and merged into this account. This program provides funding for multi-family
housing projects for revitalization and preservation of the properties. Zero percent loan, soft second loan, and
revitalization grant programs provide an inexpensive source of funding to preserve and modernize RHS’ direct
loan housing, increasing the value of the property and instilling its residents with a greater sense of pride in the
vitality of their community. A portion of the zero percent, soft seconds, and revitalization grant funds will be
used for the modification program, once subsidy rates can be established for the modifications.
The Section 515 loans are made by the agency, acting as a lender, to qualified applicants that cannot obtain
commercial credit on terms that will allow them to charge rents that are affordable to low-income tenants.
Funds are primarily intended for the construction, improvement, and purchase of multifamily rental housing
for very low to moderate-income families, the elderly, and disabled individuals in eligible rural areas, however,
funds may also be available to buy and improve land and provide necessary infrastructure.
The revitalization tools are critical to attract capital market investment into rural communities through the
modernization of existing RD housing. RHS uses the revitalization tools to provide gap financing not covered
through the Low-Income Housing Tax Credit (LIHTC) or other State or Federal programs. As a result, RHS
can leverage approximately three times its funds in investments from LIHTC and other sources. A close
partnership with State tax credit allocating agencies is critical, because without a financial commitment by
RHS through the revitalization tools the credits and other third-party funding will decrease and rehabilitation
of RHS’s aging stock of rural rental housing is less likely to occur.
In 2021, the agency obligated 142 loans across all three components of the program with the greatest increase
in in modification deferrals; 2020 ended with 28 obligations totaling $12.6 million, while 2021 resulted in 86
obligations for a total of $41.6 million. The Agency saw an increase in Zero Interest Loans with a four-fold
increase in obligations for an additional $5.4 million in 2021. Three states accounted for most of the obligated
funds for the Soft Seconds Loans: Alabama (25 percent), Missouri (18 percent), and New York (17 percent).
For 2022, the Agency proposed to transfer this program from the multifamily preservation and revitalization
account to the Rural Housing Insurance Fund account to facilitate the financing of both streams of funding.
(12b) A net increase of $75,000,000 for Section 515 Multi-family Housing Preservation and Revitalization program
budget authority ($0 available in 2022). This program was funded in the Multi-family Preservation and
Revitalization program in 2022 at $28 ($28,000,000 available in 2022).
This request provides a total of $75 million for additional investments in preservation funding, which will fully
fund 44 projects in an existing 171-project pipeline awaiting funding to undergo energy efficient rehabilitation
and preservation recapitalization. Energy efficiency enhancement and improvements are included in the scope
of work for projects awaiting funding. These projects are shovel-ready and would commence within 30 to 60
days of receipt of appropriated funding. The long-term benefits of the energy enhancements made in
conjunction with these transactions are stabilized operating expenses at the properties and improved security
value of the direct Section 515 RD debt. In addition, these transactions leverage significant private investment
in the form of low-income housing tax credit equity and new debt investment from private lenders and state
and local sources. The $75 million request will leverage sufficient external debt and equity to fund $65 million
in job-creating hard construction costs. About 39 percent of the tenants residing in these properties are people
of color. This funding will allow for 30 project and about 1,200 units to be rehabilitated and preserved as
affordable rural rental housing
.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-21
LEGISLATIVE PROPOSAL
Summary of Proposed Legislation
Program: 515 Revitalization Program
Proposal: The Rural Housing Service (RHS) seeks permanent authority for the revitalization program, which has
been a demonstration program since 2006. The multi-family housing preservation and revitalization (MPR) program
is an effective tool to modernize Rural Development’s (RD) existing multi-family housing portfolio. The average
age of rental housing in the section 515 portfolio is 28 years; much of the housing is in need of revitalization, and
projects do not have sufficient reserves to fund ongoing rehabilitation.
The MPR program uses a variety of financing options to successfully preserve the housing in the most flexible
manner possible. MPR is also effective attracting capital market investment into rural communities through the
revitalization of existing RD housing, particularly through Low-Income Housing Tax Credits (LIHTC) or other State
or Federal programs. As a result, RHS can leverage approximately three times its funds in investments from LIHTC
and other sources. This leverage reduces the cost of project preservation, especially the cost of additional debt
service to finance the rehabilitation. By reducing preservation costs, MPR helps reduce the need to invest additional
rental assistance to support the project’s additional debt service needs.
Advantages include:
• For Tenants: A permanent program will provide greater certainty in program funding to provide tenants with
decent, safe, sanitary and modern affordable housing.
• For Borrowers: A permanent program will provide borrowers with a certain funding source to fund rehabilitation
and repairs.
• For the agency: A permanent program will enable RHS to make long-term strategic plans for the Direct Loan
portfolio, continue to meet the mission of providing affordable housing, and modernize its rental housing stock.
Rationale: Adding authority for current MPR tools to existing direct loan statutory authority will provide financing
flexibility not currently available in the direct loan program.
Goal: The Section 515 direct loan program does not contain authority to utilize many of the revitalization tools
available in the MPR demonstration program. The MPR demonstration program is not currently contained in the
statute, and the agency risks not having these critical tools to provide financial support for existing multi-family
housing in need of preservation and revitalization if the MPR demonstration program is not re-authorized and the
authority for these tools is not added to the direct loan program.
Legislative Language: Title V of the Housing Act of 1949, as amended (42 U.S.C. 1471 et seq.), shall be amended
by inserting after Section 543 the following new section:
SEC. 544. PRESERVATION OF MULTIFAMILY HOUSING AND PROTECTION OF TENANTS.
(a) PRESERVATION PROGRAM.—The Secretary shall, subject to the availability of appropriations, carry out a
preservation program to provide financial incentives and other assistance to properties financed under Section 514 or
Section 515 of this title (42 U.S.C. §§1484 and 1485).
GEOGRAPHIC BREAKDOWN OF OBLIGATIONS
Table RHS-8. Geographic Breakdown of Obligations
Section 502 Direct Single-Family Housing Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$15,150
$12,602
-
-
Alaska
21,434
23,577
-
-
American Samoa
6,334
6,846
-
-
Arizona
23,454
18,025
-
-
Arkansas
11,313
11,547
-
-
California
101,223
84,781
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-22
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Colorado
19,398
13,077
-
-
Connecticut
2,740
4,167
-
-
Delaware
8,545
6,619
-
-
Florida
42,550
46,907
-
-
Georgia
24,262
18,393
-
-
Hawaii
7,366
10,882
-
-
Idaho
10,076
7,985
-
-
Illinois
12,029
10,716
-
-
Indiana
39,002
57,763
-
-
Iowa
11,242
8,919
-
-
Kansas
4,578
4,456
-
-
Kentucky
28,244
29,959
-
-
Louisiana
19,080
25,747
-
-
Maine
16,186
16,227
-
-
Maryland
6,411
6,517
-
-
Massachusetts
2,435
1,815
-
-
Michigan
34,166
31,596
-
-
Minnesota
16,216
19,487
-
-
Mississippi
19,746
20,307
-
-
Missouri
11,584
11,813
-
-
Montana
10,671
7,465
-
-
Nebraska
3,725
3,887
-
-
Nevada
8,214
5,439
-
-
New Hampshire
13,282
10,694
-
-
New Jersey
3,729
4,074
-
-
New Mexico
4,600
9,162
-
-
New York
20,060
22,340
-
-
North Carolina
59,491
50,767
-
-
North Dakota
902
2,336
-
-
Ohio
21,746
28,993
-
-
Oklahoma
11,401
7,365
-
-
Oregon
28,948
15,845
-
-
Pennsylvania
17,519
21,135
-
-
Puerto Rico
12,687
10,531
-
-
Rhode Island
2,396
567
-
-
South Carolina
35,428
44,823
-
-
South Dakota
9,025
3,374
-
-
Tennessee
47,892
46,949
-
-
Texas
34,930
31,985
-
-
Utah
37,634
38,856
-
-
Vermont
7,334
7,123
-
-
Virgin Islands
3,359
4,663
-
-
Virginia
33,400
55,295
-
-
Washington
29,743
26,537
-
-
West Virginia
9,600
9,338
-
-
Wisconsin
12,422
14,262
-
-
Wyoming
6,509
5,385
-
-
Distribution Unknown
-
-
$1,000,000
$1,500,000
Obligations
1,001,411
999,920
1,000,000
1,500,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-23
Table RHS-9. Geographic Breakdown of Obligations
Single-Family Housing Native American Relending Pilot Program (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
-
$20,842
Obligations
-
-
-
20,842
Table RHS-10. Geographic Breakdown of Obligations
Section 502 Guaranteed Single-Family Housing Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$719,227
$821,934
-
-
Alaska
122,880
117,381
-
-
American Samoa
10,484
-
-
Arizona
318,400
315,374
-
-
Arkansas
657,563
700,369
-
-
California
557,715
476,431
-
-
Colorado
265,714
258,630
-
-
Connecticut
161,386
126,213
-
-
Delaware
193,523
190,872
-
-
Florida
876,589
880,112
-
-
Georgia
940,817
853,808
-
-
Guam
-
17,748
-
-
Hawaii
214,470
205,205
-
-
Idaho
217,219
152,665
-
-
Illinois
342,414
337,999
-
-
Indiana
807,709
806,978
-
-
Iowa
275,036
265,959
-
-
Kansas
213,596
192,344
-
-
Kentucky
652,600
685,259
-
-
Louisiana
1,196,937
1,324,929
-
-
Maine
240,519
215,169
-
-
Maryland
725,013
719,995
-
-
Massachusetts
119,343
84,603
-
-
Michigan
758,924
639,816
-
-
Minnesota
502,223
448,915
-
-
Mississippi
512,261
563,758
-
-
Missouri
867,586
866,020
-
-
Montana
169,656
129,992
-
-
Nebraska
125,565
134,677
-
-
Nevada
116,624
108,938
-
-
New Hampshire
92,863
61,144
-
-
New Jersey
158,216
127,137
-
-
New Mexico
54,064
58,830
-
-
New York
184,852
176,768
-
-
North Carolina
1,218,552
1,278,994
-
-
North Dakota
85,538
91,887
-
-
Ohio
635,554
643,644
-
-
Oklahoma
350,836
366,412
-
-
Oregon
513,202
451,893
-
-
Pennsylvania
747,305
704,484
-
-
Puerto Rico
351,696
459,219
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-24
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Rhode Island
9,640
5,978
-
-
South Carolina
764,968
752,597
-
-
South Dakota
173,757
170,315
-
-
Tennessee
1,099,618
1,134,810
-
-
Texas
908,497
914,044
-
-
Utah
580,920
425,148
-
-
Vermont
64,225
49,039
-
-
Virgin Islands
-
1,647
-
-
Virginia
916,161
1,023,482
-
-
Washington
377,124
296,828
-
-
West Virginia
369,911
392,025
-
-
Wisconsin
331,035
290,237
-
-
Wyoming
204,052
207,483
-
-
Distribution Unknown
-
-
$24,000,000
$30,000,000
Obligations
23,074,579
22,726,138
24,000,000
30,000,000
Table RHS-11. Geographic Breakdown of Obligations
Section 515 Multifamily Housing Direct Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$746
$13,698
-
-
California
2,467
-
-
-
Connecticut
599
-
-
-
Florida
-
2,358
-
-
Indiana
-
9,384
-
-
Kentucky
7,259
-
-
-
Maine
-
286
-
-
Michigan
16,625
-
-
-
Mississippi
5,668
-
-
-
Missouri
-
415
-
-
New Hampshire
1,259
-
-
-
New York
-
3,290
-
-
Oregon
-
2,358
-
-
South Carolina
-
210
-
-
Texas
-
2,598
-
-
Vermont
1,314
-
-
-
Virginia
88
2,973
-
-
Washington
2,998
166
-
-
West Virginia
592
730
-
-
Wisconsin
385
-
-
-
Distribution Unknown
-
-
$40,000
$200,000
Obligations
40,000
38,466
40,000
200,000
Table RHS-12. Geographic Breakdown of Obligations
Section 538 Multifamily Housing Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
California
$13,209
$39,737
-
-
Connecticut
-
1,462
-
-
Florida
2,785
6,993
-
-
Georgia
-
10,099
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-25
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Idaho
3,235
1,000
-
-
Indiana
2,400
17,779
-
-
Iowa
-
448
-
-
Kansas
4,244
2,292
-
-
Kentucky
2,473
275
-
-
Louisiana
-
16,401
-
-
Maryland
2,214
-
-
-
Michigan
2,741
4,152
-
-
Mississippi
16,257
-
-
-
Montana
1,050
-
-
-
Nevada
-
5,850
-
-
New Mexico
-
7,339
-
-
North Carolina
32,255
15,575
-
-
North Dakota
2,385
-
-
-
Ohio
4,050
-
-
-
Oklahoma
13,123
10,240
-
-
Oregon
7,259
-
-
-
Pennsylvania
18,091
981
-
-
South Carolina
2,910
32,130
-
-
Tennessee
17,285
13,008
-
-
Texas
59,871
18,989
-
-
Utah
-
1,420
-
-
Virginia
200
-
-
-
Washington
-
16,310
-
-
West Virginia
18,651
7,480
-
-
Wisconsin
1,800
-
-
-
Distribution Unknown
-
-
$230,000
$400,000
Obligations
228,488
229,960
230,000
400,000
Table RHS-13. Geographic Breakdown of Obligations
Section 504 Direct Housing Repair Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$293
$145
-
-
Alaska
66
33
-
-
American Samoa
181
-
-
-
Arizona
187
198
-
-
Arkansas
248
274
-
-
California
220
291
-
-
Colorado
121
56
-
-
Connecticut
30
11
-
-
Delaware
4
-
-
-
Florida
197
128
-
-
Georgia
663
553
-
-
Guam
-
279
-
-
Hawaii
178
70
-
-
Idaho
90
96
-
-
Illinois
803
730
-
-
Indiana
418
375
-
-
Iowa
273
343
-
-
Kansas
64
76
-
-
Kentucky
763
714
-
-
Louisiana
383
338
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-26
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Maine
353
244
-
-
Maryland
41
85
-
-
Massachusetts
19
55
-
-
Michigan
1,044
839
-
-
Minnesota
272
339
-
-
Mississippi
860
586
-
-
Missouri
211
161
-
-
Montana
42
65
-
-
Nebraska
99
112
-
-
Nevada
27
52
-
-
New Hampshire
337
225
-
-
New Jersey
44
38
-
-
New Mexico
234
198
-
-
New York
556
543
-
-
North Carolina
835
469
-
-
North Dakota
62
38
-
-
Ohio
525
441
-
-
Oklahoma
233
130
-
-
Oregon
295
155
-
-
Pennsylvania
593
512
-
-
Puerto Rico
161
11
-
-
Rhode Island
8
-
-
-
South Carolina
460
547
-
-
South Dakota
100
80
-
-
Tennessee
979
905
-
-
Texas
1,350
1,394
-
-
Utah
40
26
-
-
Vermont
57
130
-
-
Virgin Islands
5
5
-
-
Virginia
872
898
-
-
Washington
119
127
-
-
West Virginia
312
339
-
-
Wisconsin
301
337
-
-
Wyoming
15
-
-
-
Distribution Unknown
-
-
$15,665
$50,000
Obligations
16,643
14,797
15,665
50,000
Table RHS-14. Geographic Breakdown of Obligations
Section 524 Site Development Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
$998
$5,000
Obligations
-
-
998
5,000
Table RHS-15. Geographic Breakdown of Obligations
Section 523 Self-help Housing Land Development Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
$1,000
$5,000
Obligations
-
-
1,000
5,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-27
Table RHS-16. Geographic Breakdown of Obligations
Single-Family Housing Credit Sales (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Arizona
$161
$225
-
-
Oregon
310
-
-
-
Distribution Unknown
-
-
$1,000
$10,000
Obligations
471
225
1,000
10,000
Table RHS-17. Geographic Breakdown of Obligations
Section 514 Farm Labor Housing Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Arkansas
$249
$84
-
-
Hawaii
1,570
-
-
-
Michigan
165
-
-
-
Nebraska
300
-
-
-
New Mexico
2,650
-
-
-
Oregon
4,000
-
-
-
Tennessee
1,500
-
-
-
Texas
2,500
-
-
-
Washington
3,361
-
-
-
West Virginia
3,800
-
-
-
Wisconsin
-
3,000
-
-
Distribution Unknown
-
-
$15,608
$50,000
Obligations
20,095
3,084
15,608
50,000
Table RHS-18. Geographic Breakdown of Obligations
Section 516 Farm Labor Housing Grants (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Mississippi
$382
-
-
-
Nebraska
2,700
-
-
-
New York
142
-
-
-
Tennessee
1,500
-
-
-
Washington
2,020
$1,627
-
-
West Virginia
2,193
-
-
-
Distribution Unknown
-
-
$6,000
$18,000
Obligations
8,937
1,627
6,000
18,000
Table RHS-19. Geographic Breakdown of Obligations
Multi-family Housing Preservation and Revitalization Zero Interest Rate Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
-
$93,430
Obligations
-
-
-
93,430
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-28
Table RHS-20. Geographic Breakdown of Obligations
Multi-family Housing Preservation and Revitalization Soft Seconds Loans (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
-
$73,942
Obligations
-
-
-
73,942
Table RHS-21. Geographic Breakdown of Obligations
Multi-family Housing Preservation and Revitalization Grants/Deferrals/Modifications (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
-
$11,016
Obligations
-
-
-
11,016
Table RHS-22. Geographic Breakdown of Obligations
Section 502 Direct Single-Family Housing Loans American Rescue Plan (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Georgia
-
$31
-
-
Iowa
-
64
-
-
Kansas
-
53
-
-
Michigan
-
132
-
-
Minnesota
-
56
-
-
Ohio
-
168
-
-
Pennsylvania
-
207
-
-
Texas
-
395
-
-
Wisconsin
-
91
-
-
Distribution Unknown
-
-
$254,000
$85,013
Obligations
-
1,197
254,000
85,013
Table RHS-23. Geographic Breakdown of Obligations
Section 504 Direct Housing Repair Loans American Rescue Plan (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
$58
-
Obligations
-
-
58
-
CLASSIFICATION BY OBJECTS
Table RHS-24. Classification by Objects (thousands of dollars)
Item
No.
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Other Objects:
25.2
Other services from non-Federal sources
$412,254
$413,424
$412,254
$412,254
41.0
Grants, subsidies, and contributions
120,208
65,477
34,801
224,580
Total, Other Objects
532,462
478,901
447,055
636,834
99.9
Total, new obligations
532,462
478,901
447,055
636,834
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-29
A
CCOUNT 2: RENTAL ASSISTANCE PROGRAM
APPROPRIATIONS LANGUAGE
The appropriations language follows (new language underscored; deleted matter enclosed in brackets):
Rental Assistance Program (including transfer of funds)
For rental assistance agreements entered into or renewed pursuant to the authority under section 521(a)(2) of
the Housing Act of 1949 or agreements entered into in lieu of debt forgiveness or payments for eligible
households as authorized by section 502(c)(5)(D) of the Housing Act of 1949, and for the rural housing
voucher program as authorized under section 542 of the Housing Act of 1949, notwithstanding subsection (b)
of such section, [$1,495,000,000]$1,601,926,000, of which $40,000,000 shall be available until September 30,
[2023]2024; and in addition such sums as may be necessary, as authorized by section 521(c) of the Act, to
liquidate debt incurred prior to fiscal year 1992 to carry out the rental assistance program under section
521(a)(2) of the Act: Provided, That of the amounts made available under this heading,
[$1,450,000,000]$1,563,926,000 shall be available for renewal of rental assistance agreements, including
agreements where the Secretary determines that a maturing loan for a project cannot reasonably be restructured
with another USDA loan or modification and the project was operating with rental assistance under section
521 of the Housing Act of 1949: Provided further, That the Secretary may renew the rental assistance
agreements in maturing properties, notwithstanding any provision of section 521 of the Housing Act of 1949,
for a term of at least 10 years but not more than 20 years: Provided further, That any agreement to extend the
term of the rental assistance contract under section 521 of the Housing Act of 1949 for a project shall obligate
the owner to continue to maintain the project as decent, safe, and sanitary housing and to operate the
development in accordance with the Housing Act of 1949, except that rents shall be based on the lesser of (a)
the budget-based needs of the project; or (b) the operating cost adjustment factor as a payment standard as
provided under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note): Provided further, That of the amounts made available under this heading, not less than
$6,000,000 shall be available for newly constructed units financed under section 514 and 516 of the Housing
Act of 1949: Provided further, That rental assistance agreements entered into or renewed during the current
fiscal year shall be funded for a one-year period: Provided further, That notwithstanding any other provision of
the Act, the Secretary may recapture rental assistance provided under agreements entered into prior to fiscal
year [2022]2023 for a project that the Secretary determines no longer needs rental assistance and use such
recaptured funds for current needs: Provided further, That notwithstanding any other provision of this Act, the
Secretary may recapture funds provided for rental assistance under agreements entered into prior to fiscal year
[2022]2023 for a project that the Secretary determines no longer needs rental assistance: Provided further,
That such recaptured funds shall remain available for obligation in fiscal year [2022]2023 for the purposes
specified under this heading: Provided further, That of the amounts made available under this heading,
[$45,000,000]$38,000,000 shall be available for rural housing vouchers to any low-income household,
including a household that does not receive rental assistance, residing in a property financed with a section 515
loan that has been prepaid or otherwise paid off after September 30, 2005: Provided further, That the amount
of such vouchers shall be equal to the difference between comparable market rent for the section 515 unit and
the tenant paid rent for such unit: Provided further, That such vouchers shall be subject to the availability of
annual appropriations: Provided further, That the Secretary shall, to the maximum extent practicable,
administer such vouchers with current regulations and administrative guidance applicable to section 8 housing
vouchers administered by the Secretary of the Department of Housing and Urban Development: Provided
further, That any balances available for the rural housing voucher program in the "Multi-Family Housing
Revitalization Program Account" shall be transferred to and merged with this account and available for the
rural housing voucher program: Provided further, That if the Secretary determines that the amount made
available for vouchers or rental assistance in this Act is not needed for vouchers or rental assistance, the
Secretary may use such funds for any of the programs described under this heading.
Change Description
The first change (line 9 to 10 of paragraph 1) inserts appropriations language for authorizing decoupling of the
Multifamily Housing Direct Loan Program (section 515) and the Rental Assistance Program. This budget request
proposes decoupling these two programs to help with managing section 515 maturing mortgages.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-30
LEAD-OFF TABULAR STATEMENT
Table RHS-25. Lead-Off Tabular Statement (In dollars)
Item
Amount
Estimate, 2022
$1,410,000,000
Change in Appropriation
+ 191,926,000
Budget Estimate, 2023
1,601,926,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-31
P
ROJECT STATEMENT
Table RHS-26. Project Statement Appropriations (thousands of dollars)
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Inc. or
Dec.
Chg
Key
Discretionary Appropriations:
Rental Assistance (Sec. 521)................................
$1,375,000
$1,410,000
$1,410,000
$1,557,926
+$147,926
(1)
Multi-Family Housing Revitalization Voucher .
-
-
-
38,000
+38,000
(2)
Rental Assistance New Construction…................
-
-
-
6,000
+6,000
(3)
Subtotal.............................................................
1,375,000
1,410,000
1,410,000
1,601,926
+191,926
Mandatory Appropriations:
American Rescue Act .......................................
-
100,000
-
-
-
Total Adjusted Approp.........................................
1,375,000
1,510,000
1,410,000
1,601,926
191,926
Total Appropriation.............................................
1,375,000
1,510,000
1,410,000
1,601,926
191,926
Transfers In:
Multi-Family Housing Revitalization Voucher
12X2002.........
-
-
-
7,000
7,000
Bal. Available, SOY.................................................
40,313
40,313
40,313
40,313
-
Total Available.....................................................
1,415,313
1,550,313
1,450,313
1,649,239
198,926
Bal. Available, EOY.................................................
-40,313
-40,313
-40,313
-47,313
-
Total Obligations.................................................
1,375,000
1,510,000
1,410,000
1,601,926
+191,926
Table RHS-27. Project Statement Obligations (thousands of dollars)
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Inc. or
Dec.
Discretionary Obligations:
Rental Assistance (Sec. 521)................................
$1,375,000
$1,410,000
$1,410,000
$1,557,926
+$147,926
Multi-Family Housing Revitalization Voucher ..
-
-
-
38,000
+38,000
Rental Assistance New Construction ..................
-
-
-
6,000
+6,000
Subtotal Disc oblig..........................................
1,375,000
1,410,000
1,410,000
1,601,926
+191,926
Mandatory Obligations:
American Rescue Act .....................................
-
100,000
-
-
Total Discretionary and Mandatory
Obligations...............
1,375,000
1,510,000
1,410,000
1,601,926
191,926
Transfers In........................................................
Multi-Family Housing Revitalization Voucher
12X2002......
-
-
-
7,000
7,000
Balances Available, EOY:
Rental Assistance (Sec. 521)............................
40,313
40,313
40,313
40,313
Total Bal. Available, EOY...................................
40,313
40,313
40,313
40,313
-
Total Available................................................
1,415,313
1,550,313
1,450,313
1,649,239
198,926
Bal. Available, SOY...........................................
-40,313
-40,313
-40,313
-47,313
-
Total Appropriation.........................................
1,375,000
1,510,000
1,410,000
1,601,926
198,926
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-32
Rental Assistance Program
Goal 5: Expand Opportunities for Economic Development and Improve Quality of Life in Rural and Tribal
Communities: Objective 5.2: Boost the Financial Security of Rural and Tribal Communities through Access to
Affordable Housing Objective 5.3: Increase Capacity, Sustainability, and Economic Vitality in Rural and Tribal
Communities.
Th
e numbers and letters of the following listing relates to values in the Change Key column of the Project
Statement:
(1) An increase of $147,926,000 for Rental Assistance (RA) Grants (Section 521) ($1,410,000,000 available in 2022).
This program supports this critical infrastructure by increasing housing affordability and providing homes that
improve the quality of life for rural families. As rural economies expand into service and other industry sectors,
working families are needed to sustain a local tax base that supports a population that is older than its urban
counterpart. This program helps retain a reliable workforce as it strengthens the housing market in rural
communities.
Specifically, this project-based program provides funds directly to project owners of Section 515 or 514/516-
financed rental housing. On behalf of tenants with incomes too low to pay the RD subsidized rent from their
own resources, RD pays the project owner the difference between the tenant’s contribution (30 percent of
adjusted income) and the monthly rental rate (based on the owner’s project costs). RA may be used for existing
and newly constructed developments. Projects must be established on a nonprofit or limited profit basis.
The funding level will allow RHS to continue assisting lower-income residents in obtaining and sustaining
decent, safe, and sanitary housing in rural communities and reflects the Administration’s commitment to that
goal. This program provides housing to the most needed population. This increase in funding will enable
279,097 existing contracts to be renewed, including making permanent the approximately 27,000 units that were
brought into the program by the American Rescue Plan Act supplemental funding. This program is the federal
government’s main tool for rural tenant housing as affordable housing in rural America are not easily available.
In 2021, The $1.41 billion in obligations for the base portion of the program went towards all 50 States, Puerto
Rico, and the Virgin Islands in 2021; this is an increase from $1.375 billion in obligations in 2020. The states
that received the most funds were California with $140 million in obligations and North Carolina with $95
million in obligations. The major changes in 2021 included the added category of New Construction Grant
Funds and the addition of $100 million in funding for the American Rescue Plan Act.
From the data of the 2021 occupancy report, which the Agency expects to publish in the February/March
timeframe:
•
White, Non-Hispanic households: 64.69 percent
•
Black Non-Hispanic households: 20.30 percent
•
Hispanic households: 11.91 percent
•
Asian, Pacific Islander households: 0.70 percent
•
American Indian/Alaskan Native households: 1.64 percent
•
Multi-Racial households: 0.76 percent.
•
There was a slight decrease in very low-income households, which represent 91.66 percent of all
households. Low-income households represent 7.20 percent of the total.
•
Average household incomes are up to $14,665 from $14,131 (a 3.78 percent increase); the average
income of Rental Assistance (RA) households increased to $12,501 from $11,669 (a 7.13 percent
increase).
•
Female-headed households continue to represent the majority of households (67.22 percent).
•
There was no appreciable change in the percentage of elderly/disabled/handicapped households
versus non-elderly households, which is 64.06 percent.
•
The handicapped population continues to increase within the elderly/disabled/handicapped
households.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-33
The budget is proposing to decouple section 515 and section 514 from the Rental Assistance program. Because
the Section 515 Rural Rental and 514 Farm Labor Housing portfolios are aging, mortgage maturities will
accelerate significantly from 2027 through 2041, and RA support will also be lost. There is an urgent need to
find solutions to allow these properties to recapitalize, perform needed rehabilitation and repairs, and be
preserved as quality affordable housing assets for many years to come.
Current statute requires a property to have a Section 514 or 515 mortgage to receive Section 521 Rental
Assistance (RA). If the Section 514/515 mortgage is paid off through prepayment or maturity the property can
no longer receive RA. Because keeping RA in place requires keeping the Section 514/515 mortgage in place,
utilizing new private debt or equity to recapitalize and preserve these properties is very difficult, costly and
requires complicated subordination agreements. In an effort to address this preservation hurdle, the debt is
currently deferred for 20 years under the MPR Demonstration. However, debt deferral creates substantial
credit risk due to the 20-year balloon note, is expensive from a credit subsidy perspective, and is not a
sustainable long-term preservation path for these properties.
Allowing the Section 514/515 debt to be paid off while keeping the RA in place is essential to facilitate
preservation at scale across the Section 515 portfolio. RA is a critical component underlying all modern-day
affordable housing platforms and is needed to achieve rents that will support recapitalization. RA is often
included in state housing finance agency prioritization for receipt of low-income housing tax credits and other
local resources. When the Section 515 mortgage matures or prepays, the debt load of the property is reduced,
allowing borrowers to take on additional third-party debt to facilitate recapitalization. This proposal will not
have a funding impact in 2023.
(2
) An increase of $38,000,000 for Multi-family Housing Revitalization Voucher ($0 available in 2022). This program
was funded at $40,000,000 in 2022 full year CR in the Multi-family Housing Revitalization Program account (A
decrease of $2,000,000 for Multi-family Housing Revitalization Voucher from 2022 CR).
This program was created to offer some protection to eligible multi-family housing tenants in Section 515
rental housing who may be subject to financial hardship through prepayment of the RD mortgage. When a
Section 515 property owner pays off the loan, or if the loan is foreclosed, the RD affordable housing
requirements may be modified, which can result in increased and unaffordable rents for the tenants. This
program provides such tenants with portable vouchers which may be used at the 515 property in which they
reside, or at any other rental unit in the United States that passes RD inspection and where the owner accepts
RD vouchers.
T
his program is crucial because the need for low-and moderate-income housing in rural communities is
increasing, and the existing supply of decent and affordable housing cannot satisfy this pressing need. It
strengthens rural housing markets and provides needed support for new construction and fortifies communities
through job creation and the reinvigoration of the local economy. This program supports a significant number
of jobs, which are critical to local economies in rural areas. Housing has long been a powerful economic driver
in the Nation. Multipliers developed by USDA economists suggest that the program creates or maintains 12.4
jobs for each million dollars in loan guarantees. The budget request includes language that would decouple
Rental Assistance from the existence of a multifamily loan on a property, allowing some properties to continue
to receive project-based assistance after their loan is paid off. However, not all properties may qualify for suc
h
a
ssistance, so the budget request for the Department of Housing and Urban Development (HUD) includes up
to $20 million for Tenant Protection Vouchers that will be authorized for USDA-financed properties that ar
e
paid off and do not receive ongoing project-based assistance. The budget request for the Rural Voucher
program maintains the current portfolio, but tenants in additional units in properties that no longer qualify for
Rental Assistance would receive HUD Tenant Protection Vouchers. This budget continues to provide tenant
protection against being rent-overburdened while transitioning the Rural Voucher program to HUD.
R
ural housing voucher funding enables tenants in properties that have prepaid their mortgages or bee
n
f
oreclosed to continue to access affordable housing without the benefit of the traditional rental assistance
program. Funding protects very low- and low-income families who are affected by the loss of affordable RD
housing in rural communities. The program continues to grow at a significant rate, as tenants from prepayin
g
s
ection 515 properties become voucher-eligible and existing voucher recipients remain in the program. The
budget is requesting to transfer the voucher program account under the rental assistance account. The voucher
account was funded in the multi-family revitalization and preservation account.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-34
Voucher funding needs can be widely varied depending on how many properties choose to pre-pay their loans,
the markets where these properties are located, and how many tenants choose to utilize vouchers. In 2021,
7,261 voucher grants were awarded totaling $34.6 million. In 2021, while funding was spread across nearly
every State plus Puerto Rice and Virgin Islands, nearly a quarter of all obligations in vouchers went to
Michigan (14 percent) and Wisconsin (10 percent).
(3) An increase of $6,000,000 for Rental Assistance New Construction Grants (Section 521) ($0 available in 2022).
The requested funding is a set aside of $6 million for Rental Assistance contracts to ensure there is funding for
the new units that are expected with new construction in multifamily housing direct loans and farm labor
housing. A key component of budget increases in rural housing funding is an additional requirement that all of
the housing funding for construction or rehabilitation be targeted to projects that improve energy or water
efficiency, implement green features, including clean energy generation or building electrification, electric car
charging station installations, or address climate resilience of properties These requirements will improve the
adaptability and resilience to climate change events. The budget includes a General Provision requiring single
family housing program and multi-family housing programs to encourage these new requirements when
providing a loan or a grant.
GEOGRAPHIC BREAKDOWN OF OBLIGATIONS
Table RHS-28. Section 521 Rural Rental Assistance Program Geographic Breakdown of Obligations (thousands
of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$36,246
$35,452
-
-
Alaska
6,930
8,189
-
-
Arizona
20,326
20,195
-
-
Arkansas
26,559
25,635
-
-
California
124,935
135,415
-
-
Colorado
14,703
14,194
-
-
Connecticut
9,314
9,051
-
-
Delaware
8,719
9,027
-
-
Florida
61,163
62,239
-
-
Georgia
37,935
37,258
-
-
Hawaii
10,277
12,155
-
-
Idaho
18,040
18,679
-
-
Illinois
32,235
30,507
-
-
Indiana
26,564
24,341
-
-
Iowa
26,413
25,967
-
-
Kansas
11,941
10,224
-
-
Kentucky
25,556
25,578
-
-
Louisiana
42,577
43,561
-
-
Maine
37,819
34,066
-
-
Maryland
18,411
18,856
-
-
Massachusetts
12,796
12,956
-
-
Michigan
36,721
36,514
-
-
Minnesota
26,687
27,070
-
-
Mississippi
53,155
53,361
-
-
Missouri
25,632
26,119
-
-
Montana
7,396
8,232
-
-
Nebraska
8,843
8,333
-
-
Nevada
10,560
12,176
-
-
New Hampshire
14,970
13,925
-
-
New Jersey
12,034
12,458
-
-
New Mexico
20,115
20,934
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-35
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
New York
29,200
31,142
-
-
North Carolina
90,301
93,204
-
-
North Dakota
7,063
5,142
-
-
Ohio
30,573
28,158
-
-
Oklahoma
24,305
23,860
-
-
Oregon
25,131
27,730
-
-
Pennsylvania
33,696
35,533
-
-
Puerto Rico
21,742
28,683
-
-
Rhode Island
1,684
2,793
-
-
South Carolina
36,238
35,663
-
-
South Dakota
16,457
15,717
-
-
Tennessee
32,302
32,750
-
-
Texas
61,732
70,731
-
-
Utah
10,173
9,393
-
-
Vermont
10,638
10,143
-
-
Virgin Islands
4,401
6,655
-
-
Virginia
35,345
38,037
-
-
Washington
36,441
36,352
-
-
West Virginia
18,007
18,202
-
-
Wisconsin
19,093
20,460
-
-
Wyoming
4,906
6,984
-
-
Distribution Unknown
-
-
$1,410,000
$1,557,926
Obligations
1,375,000
1,410,000
1,410,000
1,557,926
Table RHS-29. American Rescue Plan Act (ARPA) Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
-
$6,137
-
-
Arizona
-
153
-
-
Arkansas
-
1,108
-
-
California
-
5,076
-
-
Colorado
-
462
-
-
Connecticut
-
564
-
-
Delaware
-
241
-
-
Florida
-
3,210
-
-
Georgia
-
11,733
-
-
Idaho
-
20
-
-
Illinois
-
755
-
-
Indiana
-
1,503
-
-
Iowa
-
61
-
-
Kansas
-
218
-
-
Kentucky
-
6,202
-
-
Louisiana
-
6,559
-
-
Maine
-
520
-
-
Maryland
-
2,683
-
-
Massachusetts
-
95
-
-
Michigan
-
3,539
-
-
Minnesota
-
745
-
-
Mississippi
-
4,865
-
-
Missouri
-
2,179
-
-
Montana
-
58
-
-
Nebraska
-
27
-
-
Nevada
-
262
-
-
New Hampshire
-
245
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-36
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
New Jersey
-
636
-
-
New Mexico
-
193
-
-
New York
-
432
-
-
North Carolina
-
2,166
-
-
Ohio
-
2,252
-
-
Oklahoma
-
1,686
-
-
Oregon
-
483
-
-
Pennsylvania
-
2,443
-
-
Rhode Island
-
24
-
-
South Carolina
-
5,046
-
-
South Dakota
-
61
-
-
Tennessee
-
3,747
-
-
Texas
-
12,298
-
-
Utah
-
228
-
-
Vermont
-
122
-
-
Virginia
-
5,324
-
-
Washington
-
2,016
-
-
West Virginia
-
1,336
-
-
Wisconsin
-
235
-
-
Wyoming
-
51
-
-
Obligations
-
100,000
-
-
Table RHS-30. Rural Voucher Program Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
-
$38,000
Obligations
-
-
-
38,000
Table RHS-31 Rental Assistance New Construction Geographic Breakdown of Obligations (thousands of dollars
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
-
$6,000
Obligations
-
-
-
6,000
CLASSIFICATION BY OBJECTS
Table RHS-32. Classification by Objects (thousands of dollars)
Item
No.
Item (Discretionary)
2020 Actual
2021 Actual
2022
Estimated
2023
Estimated
41.0
Grants, subsidies, and contributions
$1,375,000
$1,510,000
$1,410,000
$1,601,926
99.9
Total, new obligations
1,375,000
1,510,000
1,410,000
1,601,926
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-37
A
CCOUNT 3: MULTI-FAMILY HOUSING REVITALIZATION PROGRAM
APPROPRIATIONS LANGUAGE
The appropriations language follows (new language underscored; deleted matter enclosed in brackets):
Multi-family Housing Revitalization Program Account
L
EAD-OFF TABULAR STATEMENT
Table RHS-32. Lead-Off Tabular Statement (In dollars)
Item
Program Level
Budget Authority
2022 Estimate
$124,136,000
$70,000,000
Change in Appropriation
-124,136,000
-70,000,000
Budget Estimate, 2023
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-38
PROJECT STATEMENT
Table RHS-33. Project Statement Appropriations (thousands of dollars)
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level
Inc. or
Dec.
Budget
Authority
Inc. or
Dec
Chg
Key
Discretionary Appropriations:
Rural housing voucher program and
administrative
$32,000
$32,000
$40,000
$40,000
$40,000
$40,000
-
-
-$40,000
-$40,000
(1)
MFH Preservation Zero Loans (Sec. 515)
52,970
28,000
67,862
28,000
82,136
28,000
-
-
-82,136
-28,000
(2)
General Provision: Maturing Mortgages
1,000
1,000
2,000
2,000
2,000
2,000
-
-
-2,000
-2,000
(3)
Subtotal
85,970
61,000
109,862
70,000
124,136
70,000
-
-
-124,136
-70,000
Offsetting Collections:
Total Adjusted Approp
85,970
61,000
109,862
70,000
124,136
70,000
-
-
-124,136
-70,000
Add back:
Total Appropriation
85,970
61,000
109,862
70,000
124,136
70,000
-
-
-124,136
-70,000
Recoveries, Other
2,851
2,761
3,453
2,818
2,999
2,750
-
-
-2,999
-2,750
Bal. Available, SOY
6,782
6,472
9,853
8,152
25,000
21,741
$56,526
$26,491
31,526
4,750
Total Available
95,603
70,233
123,168
80,970
152,135
94,491
56,526
26,491
-92,609
-65,250
Balances Transferred to RA
-
-
-
-
-
-
-7,000
-7,000
Balances Transferred to RHIF
-
-
-
-
-
-
-49,526
-19,491
-49,526
-19,491
Bal. Available, EOY
-16,783
-8,152
-40,067
-21,741
56,526
26,491
-
-
-
-
Total Obligations
78,820
62,081
83,101
59,229
95,608
68,000
-
-
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-39
Table RHS-34. Project Statement Obligations (thousands of dollars)
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level
Inc. or
Dec.
Budget
Authority
Inc. or
Dec.
Discretionary Obligations:
Rural housing voucher program and administrative
$34,545
$34,545
$35,157
$35,157
$47,091
$47,091
-
-
-$47,091
-
MFH Revitalization Sec.515 Zero Loans
4,231
2,237
9,644
3,979
10,000
3,409
-
-
-10,000
-$3,409
MFH 515 Revitalization Grants
-
-
420
420
500
500
-
-
-500
-500
MFH Revitalization Modification Deferral (Sec
515)
-
1,255
-
2,142
-
3,500
-
-
-
-3,500
MFH Preservation Soft Seconds Loans (Sec. 515)
39,792
23,792
37,880
17,531
38,017
13,500
-
-
-38,017
-13,500
Total Obligations
78,820
62,081
83,101
59,229
95,608
68,000
-95,608
-68,000
Balances Transferred to RHIF
-
-
-
-
-
-
$49,526
$19,491
-
-
Balances Transferred to RA
-
-
-
-
-
-
7,000
7,000
-
-
Balances Available, EOY:
-
-
MPR Zero Interest Rate
513
271
13,192
5,443
27,548
9,391
-
-
-
-
MPR Soft Second
5,470
3,192
7,773
3,597
7,040
2,500
-
-
-
-
Vouchers
1,654
1,654
4,370
4,370
6,000
6,000
-
-
-
-
Vouchers Admin Expenses - IT
261
261
655
655
1,000
1,000
-
-
-
-
515 MFH Revit. Deferrals of Liquidating Loans
5,111
-
1,803
1,803
1,338
-
-
-
-
-
MFH Preservation Pilot Program
1,000
1,000
5,000
5,000
7,000
7,000
-
-
-
-
515 Revitalization Grants
1,774
1,774
418
418
100
100
-
-
-
-
Cost of Modified Subsidy
-
-
6,855
454
6,500
500
-
-
-
-
Total Bal. Available, EOY
16,783
8,152
40,067
21,741
56,526
26,491
-
-
-
Total Available
95,603
70,233
123,168
80,970
152,134
94,491
56,526
26,491
-
Less:
Recoveries, Other
-2,851
-2,761
-3,453
-2,818
-2,999
-2,750
-
-
-
-
Bal. Available, SOY
-6782
-6,472
-9,853
-8,152
-25,000
-21,741
-56,526
-26,491
-
-
Total Appropriation
85,970
61,000
109,862
70,000
124,135
70,000
-
-
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-40
Multi-Family Housing Revitalization Program
The multi-family housing revitalization activities were transferred and merged into other accounts in the President’s
2022 Budget request. Section 515 multi-family revitalization and preservation loans were moved to the Rural
Housing Insurance Funds (RHIF) account. Rural Housing Vouchers will be moved to the Rental Assistance account.
The numbers and letters of the following listing relates to values in the Change Key column of the Project
Statement:
(1) Voucher program has been moved to the Rental Assistance Grant account, please see that account for
Justification, please see that account for Justification.
The agency continues to request funds for this program; however, starting in 2023 the budget is proposing to
merge this program under the Rental Assistance (RA) Program account. This program was created to offer
some protection to eligible multi-family housing tenants in Section 515 rental housing who may be subject to
financial hardship through prepayment of the RD mortgage. When a Section 515 property owner pays off the
loan, or if the loan is foreclosed, the RD affordable housing requirements may be modified, which can result in
increased and unaffordable rents for the tenants. This program provides such tenants with portable vouchers
which may be used at the 515 property in which they reside, or at any other rental unit in the United States that
passes RD inspection and where the owner accepts RD vouchers. The 2023 budget is requesting $38 million
for this program in the RA Account.
(2) Section 515 Multi-family Preservation and Revitalization Loan Program have been moved to the Rural Housing
Insurance Fund account, please see that account for Justification.
The agency continues to request funds for this program; however, starting in 2023 the budget is requesting
these funds out of the Rural Housing Insurance Fund (RHIF). Section 515 loans are made by the agency,
acting as a lender, to qualified applicants that cannot obtain commercial credit on terms that will allow them to
charge rents that are affordable to low-income tenants. Funds are primarily intended for the construction,
improvement, and purchase of multifamily rental housing for very low- to moderate-income families, the
elderly, and disabled individuals in eligible rural areas, however, funds may also be available to buy and
improve land and provide necessary infrastructure. The 2023 budget is requesting $75 million in program level
for this program under RHIF.
(3) A decrease of $2,000,000 for Maturing Mortgage ($2,000,000 available in 2022).
The 2023 budget is not requesting funding for this general provision.
GEOGRAPHIC BREAKDOWN OF OBLIGATIONS
Table RHS-35. Multi-Family Housing Rural Housing Voucher Program Geographic Breakdown of Obligations
(thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$243
$496
-
-
Alaska
83
69
-
-
Arizona
402
369
-
-
Arkansas
136
129
-
-
California
13
9
-
-
Colorado
134
119
-
-
Connecticut
25
-
-
-
Delaware
2,517
25
-
-
Florida
827
2,377
-
-
Georgia
100
714
-
-
Idaho
510
451
-
-
Hawaii
-
62
-
-
Illinois
840
899
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-41
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Indiana
1,730
1,804
-
-
Iowa
1,545
1,289
-
-
Kansas
546
451
-
-
Kentucky
210
172
-
-
Louisiana
212
162
-
-
Maine
668
717
-
-
Maryland
51
37
-
-
Massachusetts
75
60
-
-
Michigan
3,548
5,031
-
-
Minnesota
1,185
1,463
-
-
Mississippi
293
297
-
-
Missouri
958
1,019
-
-
Montana
904
867
-
-
Nebraska
780
597
-
-
Nevada
60
52
-
-
New Hampshire
290
305
-
-
New Jersey
467
423
-
-
New Mexico
174
164
-
-
New York
1,343
1,346
-
-
North Carolina
308
383
-
-
North Dakota
319
271
-
-
Ohio
520
499
-
-
Oklahoma
256
192
-
-
Oregon
218
193
-
-
Pennsylvania
1,411
1,128
-
-
Puerto Rico
21
5
-
-
Rhode Island
23
7
-
-
South Carolina
1,074
1,026
-
-
South Dakota
1,473
1,301
-
-
Tennessee
743
547
-
-
Texas
2,189
1,835
-
-
Utah
240
93
-
-
Vermont
6
6
-
-
Virgin Islands
113
133
-
-
Virginia
135
100
-
-
Washington
1,603
1,388
-
-
West Virginia
73
61
-
-
Wisconsin
2,877
3,427
-
-
Wyoming
74
61
-
-
Distribution Unknown
-
-
$49,400
-
Obligations
34,545
34,630
49,400
-
Table RHS-36. Multi-Family Housing Rural Housing Voucher Program Administrative Expenses Geographic
Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
$527
$600
-
Obligations
-
527
600
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-42
Table RHS- 37 Multi-Family Revitalization – Zero Loans Geographic Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Enacted
2022
Estimated
2023
Estimated
Illinois
-
$326
-
-
Indiana
-
3,319
-
-
Louisiana
$1,000
-
-
-
Michigan
-
809
-
-
New York
-
2,645
-
-
Ohio
540
-
-
-
South Carolina
2,691
-
-
-
Vermont
-
312
-
-
Virginia
-
1,532
-
-
Washington
-
700
-
-
Distribution Unknown
-
-
$10,000
-
Obligations
4,231
9,644
10,000
-
Table RHS-38. Multi-Family Revitalization – Soft Seconds Geographic Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$6,993
$9,638
-
-
Arkansas
1,823
Connecticut
1,586
-
-
-
Colorado
-
328
-
-
Illinois
-
234
-
-
Indiana
220
1,534
-
-
Louisiana
8,607
2,410
-
-
Maine
2,165
-
-
-
Michigan
-
1,708
-
-
Missouri
1,783
6,910
-
-
New York
-
6,378
-
-
Ohio
5,155
2,837
-
-
Oklahoma
-
2,544
-
-
Oregon
2,895
-
-
-
South Carolina
3,012
-
-
-
Texas
2,706
-
-
-
Vermont
172
731
-
-
Washington
245
806
-
-
Wisconsin
4,253
-
-
-
Distribution Unknown
-
-
$32,642
-
Obligations
39,792
37,880
32,642
-
Table RHS-39. Multi-Family Revitalization – 515 Grants Geographic Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Missouri
-
$420
-
-
Distribution Unknown
-
-
$500
-
Obligations
-
420
500
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-43
Table RHS-40. Multi-Family Revitalization –
General Provision: Maturing Mortgages Geographic Breakdown of
Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
$500
-
Obligations
-
-
500
-
CLASSIFICATION BY OBJECTS
Item
No.
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
41.0
Grants, subsidies, and contributions
$62,081
$59,229
$68,000
-
99.9
Total, new obligations
62,081
59,229
68,000
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-44
A
CCOUNT 4: MUTUAL AND SELF-HELP HOUSING GRANTS
APPROPRIATIONS LANGUAGE
The appropriations language follows (new language underscored; deleted matter enclosed in brackets):
Mutual and Self-Help Housing Grants
For grants and contracts pursuant to section 523(b)(1)(A) of the Housing Act of 1949 (42 U.S.C. 1490c),
[$32,000,000]$40,000,000, to remain available until expended.
LEAD-OFF TABULAR STATEMENT
Table RHS-41. Lead-Off Tabular Statement (In dollars)
Item
Amount
Estimate, 2022
$31,000,000
Change in Appropriation
+ 9,000,000
Budget Estimate, 2023
40,000,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-45
PROJECT STATEMENT
Table RHS-42. Project Statement Appropriations (thousands of dollars)
Item
2020
Actual
BA
2021
Actual
BA
2022
Estimated
BA
2023
Estimated
BA
Budget
authority
Inc or Dec
Chg
Key
Discretionary Appropriations:
Mutual and self-help housing grants.......
$31,000
$31,000
$31,000
$40,000
+$9,000
(1)
Subtotal...............................................
31,000
31,000
31,000
40,000
+9,000
Total Adjusted Approp...........................
31,000
31,000
31,000
40,000
9,000
Total Appropriation................................
31,000
31,000
31,000
40,000
9,000
Recoveries, Other ....................................
1,199
137
500
375
-125
Bal. Available, SOY...................................
3,460
2,875
2,152
2,127
-25
Total Available........................................
35,659
34,012
33,652
42,502
8,850
Bal. Available, EOY..................................
-2,875
-2,152
-2,127
-377
+1,750
Total Obligations....................................
32,784
31,861
31,525
42,125
+10,600
Table RHS-43. Project Statement Obligations (thousands of dollars)
Item
2020
Actual
BA
2021
Actual
BA
2022
Estimated
BA
2023
Estimated
BA
Budget
authority Inc
or Dec
Discretionary Obligations:
Mutual and self-help grants................
$32,784
$31,861
$31,525
$42,125
+$10,600
Subtotal Disc oblig..........................
32,784
31,861
31,525
42,125
+10,600
Total Obligations................................
32,784
31,861
31,525
42,125
10,600
Balances Available, EOY:
Mutual and self-help grants................
2,875
2,152
2,127
377
-1,750
Total Bal. Available, EOY.....................
2,875
2,152
2,127
377
-1,750
Total Available....................................
35,659
34,012
33,652
42,502
8,850
Recoveries, Other .................................
-1,199
-137
-500
-375
125
Bal. Available, SOY...............................
-3,460
-2,875
-2,152
-2,127
25
Total Appropriation............................
31,000
31,000
31,000
40,000
9,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-46
Mutual and Self-Help Housing Grants
Goal 5: Expand Opportunities for Economic Development and Improve Quality of Life in Rural and Tribal
Communities: Objective 5.2: Boost the Financial Security of Rural and Tribal Communities through Access to
Affordable Housing Objective 5.3: Increase Capacity, Sustainability, and Economic Vitality in Rural and Tribal
Communities.
Access to affordable and safe housing is at the foundation of strong communities, healthy families and vibrant
economies. USDA is committed to ensuring that people living in rural and tribal communities have equitable and
affordable access to housing. Rural Development will improve delivery of its housing programs and resources, by
embedding key Departmental priorities such as climate and equity. This includes continuing to identify opportunities
to make housing more accessible, expanding outreach into underserved rural and tribal communities, and
committing to creating more sustainable and energy efficient housing. In doing so, Rural Development will help
keep families in rural America financially secure in their homes, especially in the face of the COVID-19 pandemic
The numbers and letters of the following listing relates to values in the Change Key column of the Project
Statement:
(1) An increase of $9,000,000 for Mutual and Self-Help Housing Grants ($31,000,000 available in 2022).
This program provides grant funding to eligible entities to support families who cooperatively build each
other’s homes. Grant recipients supervise groups of low- and very low-income individuals and families as they
construct their own homes in rural areas. The group members provide most of the construction labor on each
other’s homes, with technical assistance from the organization overseeing the project. Eligible applicants
include Government non-profit organizations, Federally-recognized Tribes, and private, non-profit
organizations. In addition to helping low- and very low-income families attain homeownership, this program
assists in stimulating local economies, providing job training, and fostering community service skills. A
funding level of $40 million would allow the agency to continue to facilitate housing security and community
stability in rural areas across the Nation. The program remains important to the agency for advancement of
rural prosperity and economic development as indicated by 2021 program obligations totaling $31.9 million
for 52 grants provided to non-profit organizations in rural America. This program is instrumental for reaching
out to minority populations as they are working with contractor to build their houses before requesting a
section 502 Direct mortgage.
GEOGRAPHIC BREAKDOWN OF OBLIGATIONS
Table RHS-44. Geographic Breakdown of Obligations Mutual Self-Help Housing Grants (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
-
$401
-
-
Alaska
$628
91
-
-
Arizona
1,289
2,909
-
-
Arkansas
944
1,311
-
-
California
10,211
4,998
-
-
Colorado
635
2,001
-
-
Delaware
1,195
1,096
-
-
District of Columbia
83
81
-
-
Florida
1,248
3,913
-
-
Hawaii
300
620
-
-
Idaho
-
624
-
-
Indiana
425
-
-
-
Kansas
-
625
-
-
Kentucky
-
106
-
-
Maryland
-
485
-
-
Massachusetts
300
-
-
-
Mississippi
49
-
-
-
Missouri
-
50
-
-
Montana
1,605
785
-
-
New Jersey
397
-
-
-
New Mexico
169
-
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-47
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
North Carolina
1,369
-
-
-
Ohio
-
75
-
-
Oklahoma
3,874
1,993
-
-
Pennsylvania
470
-
-
-
Rhode Island
-
91
-
-
South Dakota
55
867
-
-
Tennessee
300
-
-
-
Utah
5,617
5,109
-
-
Virginia
-
44
-
-
Washington
1,590
3,190
-
-
Western Pacific
30
398
Distribution Unknown
-
-
$31,525
$42,125
Obligations
32,784
31,861
31,525
42,125
CLASSIFICATION BY OBJECTS
Table RHS-45. Classification by Objects (thousands of dollars)
Item
No.
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
41.0
Grants, subsidies, and contributions
$32,784
$31,861
$31,525
$42,125
99.9
Total, new obligations
32,784
31,861
31,525
42,125
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-48
A
CCOUNT 5: RURAL HOUSING ASSISTANCE GRANTS
APPROPRIATIONS LANGUAGE
The appropriations language follows (new language underscored; deleted matter enclosed in brackets):
Rural Housing Assistance Grants
For grants for very low-income housing repair and rural housing preservation made by the Rural Housing
Service, as authorized by 42 U.S.C. 1474, and 1490m, [$45,000,000]$75,000,000, to remain available until
expended.
L
EAD-OFF TABULAR STATEMENT
Table RHS-46. Lead-Off Tabular Statement (In dollars)
Item
Amount
Estimate, 2022
$47,500,000
Change in Appropriation
+ 27,500,000
Budget Estimate, 2023
75,000,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-49
PROJECT STATEMENT
Table RHS-47. Project Statement Appropriations (thousands of dollars)
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Inc. or
Dec.
Chg
Key
Discretionary Appropriations:
Very Low-Income Housing Repair Grants........
$30,000
$30,000
$30,000
$45,000
+$15,000
(1)
Rural Housing Preservation Grants...................
15,000
15,000
15,000
30,000
+15,000
(2)
GP Protecting Animals with Shelter..................
2,000
2,500
2,500
-
-2,500
(3)
Subtotal.......................................................
47,000
47,500
47,500
75,000
+27,500
Offsetting Collections:
Total Adjusted Approp....................................
47,000
47,500
47,500
75,000
27,500
Total Appropriation.........................................
47,000
47,500
47,500
75,000
27,500
Recoveries, Other .............................................
1,764
1,934
1,728
1,720
-8
Bal. Available, SOY...........................................
12,610
14,126
22,772
24,000
+1,228
Total Available................................................
61,373
63,560
72,000
100,720
28,720
Bal. Available, EOY...........................................
-14,126
-22,772
-24,000
-25,720
-1,720
Total Obligations.............................................
47,247
40,788
48,000
75,000
+27,000
Table RHS-48. Project Statement Obligations (thousands of dollars)
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Inc. or
Dec.
Discretionary Obligations:
Very Low-Income Housing Repair Grants...............
$31,542
$24,643
$30,000
$45,000
+$15,000
Rural Housing Preservation Grants..........................
13,626
13,679
15,000
30,000
+15,000
GP Protecting Animals with Shelter.........................
2,000
2,420
3,000
-
-3,000
Compensation for Construction Defects Grants........
79
46
-
-
-
Total Obligations.....................................................
47,247
40,788
48,000
75,000
27,000
Balances Available, EOY:
GP Protecting Animals with Shelter…......................
-
80
500
-
-500
Rural Housing Preservation Grants..........................
-
7,000
11,121
11,681
+560
Very Low-Income Housing Repair Grants...............
14,126
15,692
12,379
14,039
1,660
Total Bal. Available, EOY..........................................
14,126
22,772
24,000
25,720
+1,720
Total Available.......................................................
61,373
63,560
72,000
100,720
28,720
Less:
Recoveries, Other .....................................................
-1,764
-1,934
-1,728
-1,720
8
Bal. Available, SOY..................................................
-12,610
-14,126
-22,772
-24,000
-1,228
Total Appropriation.................................................
47,000
47,500
47,500
75,000
27,500
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-50
Rural Housing Assistance Grants
Goal 5: Expand Opportunities for Economic Development and Improve Quality of Life in Rural and Tribal
Communities: Objective 5.2: Boost the Financial Security of Rural and Tribal Communities through Access to
Affordable Housing Objective 5.3: Increase Capacity, Sustainability, and Economic Vitality in Rural and Tribal
Communities.
Access to affordable and safe housing is at the foundation of strong communities, healthy families and vibrant
economies. USDA is committed to ensuring that people living in rural and tribal communities have equitable and
affordable access to housing. Rural Development will improve delivery of its housing programs and resources, by
embedding key Departmental priorities such as climate and equity. This includes continuing to identify opportunities
to make housing more accessible, expanding outreach into underserved rural and tribal communities, and
committing to creating more sustainable and energy efficient housing. In doing so, Rural Development will help
keep families in rural America financially secure in their homes, especially in the face of the COVID-19 pandemic
The numbers and letters of the following listing relates to values in the Change (Chg) Key column of the Project
Statement:
(1) An increase of $15,000,000 for the Very Low-Income Housing Repair Grants (Section 504) ($30,000,000
available in 2022).
The increase in funding for this program is essential because repair grants assist very low-income elderly rural
homeowners needing critical home repairs. Recipients are unable to afford a loan and have no other means or
access to funding. Grants up to $7,500 are available to improve accessibility or to remove health and safety
hazards. Grants must be repaid to the government if the property is sold within three years. Although this
program is limited in size, grants allow very low-income elderly homeowners on a fixed budget to remain at
home and live independently. This program improves their quality of life by assuring a safe and functional
environment.
By providing these small grants, Rural Development secures decent, safe, and affordable housing for rural
residents, which is a fundamental agency objective. The Agency obligated $24.6 million across 3,709 grants in
2021. Additionally, the Agency continued its support of Persistent Poverty areas as $2.1 million went towards
Housing Repair Grants-Persistent Poverty, five grants for $41 thousand were award for Housing Repair
Underserved Areas Grants-Persistent Poverty, and four grants for $32 thousand were award for Colonias
Grants for Persistent Poverty. An increase in $15 million would support approximately 2,288 grants at the
current average grant amount of $6,555.
(2) An increase of $15,000,000 for Rural Housing Preservation Grants (Section 533) ($15,000,000 available in
2022).
This program strives to improve the quality of existing multi-family housing and some single-family housing
units through partnerships with various local public bodies and non-profit organizations. This program
supports low-income elderly rural residents with maintaining their houses free of health and safety hazards. In
2021, the Agency obligated approximately $13.7 million across 41 states, Puerto Rico, and the Western
Pacific; Texas received the most funding with approximately $1.5 million in obligations towards seven grants.
The Agency awarded one Persistent Poverty grant for $50,000 in Colorado. An increase in $15 million would
support approximately 128 more grants at the current average grant amount of $116,920.
(3) A decrease of $2,500,000 for Rural Housing Assistance Grants, Protecting animals with Shelter, General
Provision 754 ($2,500,000 available in 2022).
The budget is not requesting funding for this program.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-51
GEOGRAPHIC BREAKDOWN OF OBLIGATIONS
Table RHS-49. Section 504 Grants Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$349
$285
-
-
Alaska
138
45
-
-
Arizona
554
314
-
-
Arkansas
354
369
-
-
California
573
614
-
-
Colorado
168
131
-
-
Connecticut
47
29
-
-
Delaware
11
4
-
-
Florida
532
409
-
-
Georgia
1,238
827
-
-
Hawaii
55
54
-
-
Idaho
105
76
-
-
Illinois
1,286
1,037
-
-
Indiana
789
433
-
-
Iowa
661
456
-
-
Kansas
75
83
-
-
Kentucky
1,446
1,386
-
-
Louisiana
663
694
-
-
Maine
433
426
-
-
Maryland
98
76
-
-
Massachusetts
36
72
-
-
Michigan
1,602
1,368
-
-
Minnesota
248
288
-
-
Mississippi
2,627
1,304
-
-
Missouri
335
223
-
-
Montana
75
103
-
-
Nebraska
132
81
-
-
Nevada
13
64
-
-
New Hampshire
436
288
-
-
New Jersey
180
133
-
-
New Mexico
355
299
-
-
New York
1,198
1,020
-
-
North Carolina
1,737
985
-
-
North Dakota
83
100
-
-
Ohio
613
661
-
-
Oklahoma
304
174
-
-
Oregon
193
144
-
-
Pennsylvania
1,236
1,019
-
-
Puerto Rico
434
38
-
-
Rhode Island
19
13
-
-
South Carolina
725
827
-
-
South Dakota
124
57
-
-
Tennessee
1,817
1,464
-
-
Texas
3,606
2,693
-
-
Utah
37
8
-
-
Vermont
287
285
-
-
Virgin Islands
12
25
-
-
Virginia
1,830
1,577
-
-
Wake Island
414
379
-
-
Washington
251
200
-
-
West Virginia
435
545
-
-
Wisconsin
536
442
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-52
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Wyoming
37
18
-
-
Distribution Unknown
-
-
$24,851
$45,000
Obligations
31,542
24,643
24,851
45,000
Table RHS-50. Section 533 Grants Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Arizona
$216
$150
-
-
Arkansas
280
281
-
-
California
565
565
-
-
Colorado
102
288
-
-
Connecticut
106
55
-
-
Florida
402
351
-
-
Georgia
572
470
-
-
Hawaii
96
134
-
-
Illinois
274
376
-
-
Indiana
622
508
-
-
Iowa
163
163
-
-
Kansas
100
137
-
-
Kentucky
423
463
-
-
Louisiana
385
523
-
-
Maine
214
249
-
-
Maryland
350
349
-
-
Massachusetts
96
-
-
-
Michigan
361
362
-
-
Minnesota
202
272
-
-
Mississippi
540
436
-
-
Missouri
299
358
-
-
Montana
88
100
-
-
Nebraska
60
225
-
-
Nevada
-
50
-
-
New Hampshire
100
-
-
-
New Jersey
231
298
-
-
New Mexico
174
175
-
-
New York
357
334
-
-
North Carolina
546
546
-
-
North Dakota
70
194
-
-
Ohio
419
488
-
-
Oklahoma
-
233
-
-
Oregon
250
173
-
-
Pennsylvania
367
448
-
-
Puerto Rico
100
100
-
-
Rhode Island
50
-
-
-
South Carolina
327
327
-
-
Tennessee
464
434
-
-
Texas
1,475
1,486
-
-
Utah
152
102
-
-
Vermont
525
175
-
-
Virginia
323
423
-
-
Washington
-
200
-
-
West Virginia
253
215
-
-
West Pacific
-
148
-
-
Wisconsin
418
313
-
-
Wyoming
101
-
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-53
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
$15,000
$30,000
Obligations
13,626
13,679
15,000
30,000
Table RHS-51. Section 754: Title of GP Protecting Animals with Shelter Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
$2,000
$2,420
$3,000
-
Obligations
2,000
2,420
3,000
-
Table RHS-52. Rural Housing Compensation for Construction Defects Grants Breakdown of Obligations
(thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alaska
-
$45
-
-
Kentucky
$36
1
-
-
North Carolina
3
-
-
-
Obligations
79
46
-
-
CLASSIFICATION BY OBJECTS
Table RHS-53. Classification by Objects (thousands of dollars)
Item
No.
Item
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
41.0
Grants, subsidies, and contributions
$47,247
$40,788
$48,097
$75,000
99.9
Total, new obligations
47,247
40,788
48,097
75,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-54
A
CCOUNT 6: RURAL COMMUNITY FACILITIES PROGRAM
APPROPRIATIONS LANGUAGE
The appropriations language follows (new language underscored; deleted matter enclosed in brackets):
Rural Community Facilities Program Account (including transfers of funds)
For gross obligations for the principal amount of direct and guaranteed loans as authorized by section 306 and
described in section 381E(d)(1) of the Consolidated Farm and Rural Development Act, $2,800,000,000 for
direct loans and $500,000,000 for guaranteed loans.
For the cost of direct loans, loan guarantees and grants, including the cost of modifying loans, as defined in
section 502 of the Congressional Budget Act of 1974, for rural community facilities programs as authorized by
section 306 and described in section 381E(d)(1) of the Consolidated Farm and Rural Development Act,
$74,000,000, to remain available until expended: Provided, That [$6,000,000]$12,000,000 of the amount
appropriated under this heading shall be available for a Rural Community Development Initiative: Provided
further, That such funds shall be used solely to develop the capacity and ability of private, nonprofit
community-based housing and community development organizations, low-income rural communities, and
Federally Recognized Native American Tribes to undertake projects to improve housing, community facilities,
community and economic development projects in rural areas: Provided further, That such funds shall be made
available to qualified private, nonprofit and public intermediary organizations proposing to carry out a program
of financial and technical assistance: Provided further, That such intermediary organizations shall provide
matching funds from other sources, including Federal funds for related activities, in an amount not less than
funds provided: Provided further, That any unobligated balances from prior year appropriations under this
heading for the cost of direct loans, loan guarantees and grants, including amounts deobligated or cancelled,
may be made available to cover the subsidy costs for direct loans and or loan guarantees under this heading in
this fiscal year: Provided further, That no amounts may be made available pursuant to the preceding proviso
from amounts that were designated by the Congress as an emergency requirement pursuant to a Concurrent
Resolution on the Budget or the Balanced Budget and Emergency Deficit Control Act of 1985: Provided
further, That $10,000,000 of the amount appropriated under this heading shall be available for community
facilities grants to tribal colleges, as authorized by section 306(a)(19) of such Act: Provided further, That
sections 381E-H and 381N of the Consolidated Farm and Rural Development Act are not applicable to the
funds made available under this heading.
Table RHS-54. Lead-Off Tabular Statement (In dollars)
Item
Grants
Program Level
Subsidy
Estimate, 2022
$51,000,000
$3,351,000,000
$25,000,000
Change in Appropriation
+ 23,000,000
+ 23,000,000
-25,000,000
Budget Estimate, 2023
74,000,000
3,374,000,000
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-55
PROJECT STATEMENT
Table RHS-55. Project Statement Appropriations (thousands of dollars)
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level
Inc. or
Dec.
Budget
Authority
Inc. or
Dec.
Chg
Key
Discretionary Appropriations:
Community Facilities Direct Loans.............................
$2,800,000
$36,832
$2,800,000
-
$2,800,000
-
$2,800,000
-
-
-
(1)
Community Facilities Guaranteed Loans....................
500,000
-
500,000
-
500,000
-
500,000
-
-
-
(2)
Direct Community Facility Variable Rate Loans.......
-
-
347,705
$25,000
$25,000
-
-
-$25,000
(3)
Community Facilities Grants......................................
32,000
32,000
32,000
32,000
32,000
32,000
52,000
$52,000
+$20,000
+20,000
(4)
Rural Community Development Initiative Grants......
6,000
6,000
6,000
6,000
6,000
6,000
12,000
12,000
+6,000
+6,000
(5)
Tribal College Grants.................................................
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
+5,000
+5,000
(6)
Economic Impact Initiative.......................................
6,000
6,000
6,000
6,000
6,000
6,000
-
-
-6,000
-6,000
(7)
GP Rural Hospitals Pilot...........................................
1,000
1,000
2,000
2,000
2,000
2,000
-
-
-2,000
-2,000
(8)
Subtotal................................................................
3,350,000
86,832
3,698,705
76,000
3,351,000
76,000
3,374,000
74,000
+23,000
-2,000
Mandatory Appropriations:
American Rescue Act PL 117-2…......................
-
-
475,000
475,000
-
-
-
-
-
-
Administrative Expenses: American Rescue Act
adding PL 117-2….....
-
-
25,000
25,000
-
-
-
-
-
-
Subtotal............................................................
-
-
500,000
500,000
-
-
-
-
-
-
Total Adjusted Approp........................................
3,350,000
86,832
4,198,705
576,000
3,351,000
76,000
3,374,000
74,000
23,000
-
Add back:.............................................................
-
-
Rescission, Transfers In and Out.............................
-
-36,832
-
-
-
-
-
-
-
-
Total Appropriation.............................................
3,350,000
50,000
4,198,705
576,000
3,351,000
76,000
3,374,000
74,000
23,000
-
Transfers In:
Interchange Trans. (RUS W&W to CF Direct)...
-
36,832
-
-
-
-
-
-
-
-
Total Transfers In............................................
-
36,832
-
-
-
-
-
-
-
-
Transfers Out:
Recoveries, Other ...................................................
206,569
3,595
215,000
4,282
238,000
3,825
176,522
4,210
$-61,478
$385
Bal. Available, SOY...............................................
310,815
160,023
492,182
135,142
583,972
548,185
411,782
376,000
-172,190
-172,185
Total Available...................................................
3,867,383
250,450
4,905,887
715,424
4,172,972
628,010
3,962,304
454,210
-210,668
-171,800
Lapsing Balances....................................................
-1,892,335
-1,000
-2,468,171
-1,239
-1,698,090
-1,010
-1,699,568
-1,210
-1,478
-200
Bal. Available, EOY.............................................
-492,182
-135,142
-583,972
-548,185
-411,782
-376,000
-85,219
-79,000
+326,563
+297,000
Total Obligations..............................................
1,482,866
114,308
1,853,744
166,000
2,063,100
251,000
2,177,517
374,000
+114,417
+123,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-56
Table RHS-56. Project Statement Obligations (thousands of dollars)
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level
Inc. or
Dec.
Budget
Authority
Inc. or
Dec.
Discretionary Obligations:
Community Facilities Direct Loans............................
$1,267,840
-
$1,158,479
-
$1,684,000
-
$1,648,000
-
-$36,000
-
Community Facilities Guaranteed Loans ...................
100,718
-
242,349
-
153,100
-
155,517
-
+2,417
-
Direct Community Facility Variable Rate Loans.........
-
-
309,145
$22,228
-
$25,000
-
-
-
-$25,000
Community Facilities Grants ......................................
34,372
$34,372
29,821
29,821
32,000
32,000
52,000
$52,000
+20,000
+20,000
GP Hospital Pilot.........................................................
1,000
1,000
2,000
2,000
2,000
2,000
-
-
-2,000
-2,000
Rural Community Development Initiative Grants .....
6,504
6,504
5,733
5,733
6,000
6,000
12,000
12,000
+6,000
+6,000
Tribal College Grants..................................................
5,178
5,178
5,006
5,006
5,000
5,000
10,000
10,000
+5,000
+5,000
Community Facilities Disaster Grants.........................
59,479
59,479
68,396
68,396
-
-
-
-
-
-
Essential Community Facilities TAT Grants...............
1,500
1,500
1,500
1,500
-
-
-
-
-
-
Adminstrative Expenses: Economic Impact Initiative
Grants.........
589
589
300
300
300
300
-
-
-300
-300
Economic Impact Initiative Grants.............................
5,686
5,686
6,017
6,017
5,700
5,700
-
-
-5,700
-5,700
Subtotal Disc oblig..................................................
1,482,866
114,308
1,828,746
141,000
1,888,100
76,000
1,877,517
74,000
-10,583
-2,000
Mandatory Obligations:
American Rescue Act.................................................
-
-
-
-
175,000
175,000
300,000
300,000
+125,000
+125,000
Adminstrative Expenses: American Rescue Act PL
117-2............
-
-
25,000
25,000
-
-
-
-
-
-
Subtotal Mand Oblig...............................................
-
-
25,000
25,000
175,000
175,000
300,000
300,000
+125,000
+125,000
Total Obligations........................................................
1,482,866
114,308
1,853,746
166,000
2,063,100
251,000
2,177,517
374,000
-
-
Add back:...................................................................
Lapsing Balances...........................................................
1,892,335
1,000
2,468,170
1,239
1,698,090
1,010
1,699,568
1,210
+1,478
+200
Balances Available, EOY:
Community Facilities Guaranteed Loans ..................
399,282
2,074
-
-
-
-
Direct Community Facility Variable Rate Loans.......
-
-
38,560
2,772
38,554
2,772
38,554
2,772
-
-
Modification Cost.......................................................
-
40,168
40,167
40,167
40,167
40,167
-
29,563
-40,167
-10,604
American Rescue Act adding PL 117-2.....................
-
-
475,000
475,000
300,000
300,000
-
-
-300,000
-300,000
Community Facility Grants........................................
1,005
1,005
4,747
4,747
4,920
4,920
5,025
5,025
+105
+105
Rural Community Development Initiative Grants......
301
301
910
910
1,025
1,025
2,590
2,590
+1,565
+1,565
Persistent Poverty Grants ...........................................
396
396
262
262
350
350
250
250
-100
-100
Tribal College Grants...................................................
-
-
910
910
955
955
3,250
3,250
+2,295
+2,295
Economic Impact Initiative Grants..............................
787
787
431
431
375
375
350
350
-25
-25
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-57
Item
2020
Program
Level
2020
Actual
BA
2021
Program
Level
2021
Actual
BA
2022
Program
Level
2022
Estimated
BA
2023
Program
Level
2023
Estimated
BA
Program
Level
Inc. or
Dec.
Budget
Authority
Inc. or
Dec.
Disaster Relief Grants P.L. 116-20.............................
90,411
90,411
22,985
22,986
25,436
25,436
35,200
35,200
+9,764
+9,764
Total Bal. Available, EOY.............................................
492,182
135,142
583,972
548,185
411,782
376,000
85,219
79,000
-326,563
-297,000
Total Available...........................................................
3,867,383
250,450
4,905,887
715,424
4,172,972
628,010
3,962,304
454,210
-210,668
-173,800
Less:
Total Transfers In...........................................................
-
-36,832
-
-
-
-
-
-
-
-
Recoveries, Other .........................................................
-206,569
-3,595
-215,000
-4,282
-238,000
-3,825
-176,522
-4,210
61,478
-385
Bal. Available, SOY......................................................
-310,815
-160,023
-492,182
-135,142
-583,972
-548,185
-411,782
-376,000
172,190
172,185
Total Appropriation....................................................
3,350,000
50,000
4,198,705
576,000
3,351,000
76,000
3,374,000
74,000
23,000
-2,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-58
Community Facilities Program Account
Goal 5: Expand Opportunities for Economic Development and Improve Quality of Life in Rural and Tribal
Communities: Objective 5.1: Improve Rural and Tribal Community Infrastructure, Including Affordable E-
Connectivity, Cornerstone Community Facilities, Sustainable and Reliable Power, and Clean and Safe Water and
Sewer; and Objective 5.4: Promote Environmental Justice by Maximizing Sustainable and Green Economic
Development in Rural and Tribal Communities.
The numbers and letters of the following listing relates to values in the Change (Chg) Key column of the Project
Statement:
(1) No change for Direct Community Facility (CF) Loan Program ($2,800,000,000 available in 2022).
This negative-subsidy program provides low-interest, direct loans to public bodies, community-based
nonprofit corporations, and Federally-recognized Tribes to develop essential community facilities in rural
areas. A funding level of $2.8 billion for the direct loan program will continue to strengthen rural communities
across America, delivering this critical program to communities to meet infrastructure needs. The loan level is
projected to meet anticipated demand and can be delivered with the existing staffing levels. Continued
leveraging of financial resources from the capital credit markets and other funding partners will ensure this
program’s success.
Direct loans are primarily targeted to health care, education, and public safety. This program obligated 435
direct loans totaling $1.158 billion in 2021. The agency also obligated 17 loans totaling $18.3 million in
persistent poverty areas, primarily in North Carolina but also in other Southeastern states such as Alabama,
Georgia, Kentucky, and Virginia.
(2) No change for Guaranteed Community Facility (CF) Loan Program ($500,000,000 available in 2022).
This program originated as an inexpensive alternative to the equivalent direct loan program and is available to
public bodies, community-based nonprofit corporations, and Federally-recognized Tribes to develop essential
community facilities in rural areas. The guaranteed loan program serves the same organizations and purposes
as the direct loan funding, the primary difference being that the guaranteed loans are made and serviced by a
bank or other commercial lender and guaranteed by the Federal government.
A funding level of $500 million for the guaranteed loan program will continue to strengthen rural communities
across America, delivering this critical program to communities to meet infrastructure needs. The loan level is
projected to meet anticipated demand and can be delivered with the existing staffing levels. Continued
leveraging of financial resources from the capital credit markets and other funding partners will ensure this
programs success.
This program has obligated 28 guaranteed loans totaling $242.3 million across the U.S. The top five states with
the largest investments include: Alabama, Washington, Illinois, New York, and South Carolina.
Approximately 48 percent of the guaranteed loans supported general medical and surgical hospitals in rural
communities.
(3) A decrease of $25,000,000 in Community Facilities Subsidy for Non-Conforming loans ($25,000,000 available
in 2022).
The budget is not requesting this funding. The budget does not support non-conforming loans.
(4) An increase of $20,000,000 for Community Facilities Grants ($32,000,000 available in 2022).
The CF Grant Program provides funding to eligible public bodies, community-based nonprofit corporations,
and Federally recognized Indian Tribes to develop essential community facilities in rural areas. Funds can be
used to purchase, construct, and/or improve essential community facilities, pay related project expenses, and
purchase equipment. Examples of essential community facilities include hospitals, medical and dental clinics,
town halls, courthouses, museums, libraries, street improvements, and transitional housing. CF grants, often
used in conjunction with loans to meet funding needs, can also help defray pre-development and compliance-
associated costs which enable rural communities to move forward with needed projects.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-59
In 2021, 563 grants totaling approximately $29.821 million were awarded. This grant program is one of the
primary programs furthering the Department’s goal to develop rural communities through the financing of
community infrastructure projects that spur economic growth, job creation, and improve access to essential
facilities and services. By providing grants to nonprofit organizations in high-need, high-poverty areas to
develop or improve essential community facilities and services it ensures that rural residents have access to
good schools, quality healthcare, and adequate public safety facilities and service. The grant recipients are
equally distributed across the U.S. and demand for the program has increased over the last five years. This
program will be instrumental in providing funds for local communities that have less access to financing. Five
states received between $1 and $1.5 million in grant funding, those states are Pennsylvania, Michigan, North
Carolina, Georgia, South Carolina, and Texas. Across the program, the Agency awarded $4.4 million in grants
for police cars, $2.8 million in street maintenance equipment, and $2.3 million for fire trucks.
(5) An increase of $6,000,000 for Rural Community Development Initiative Grants ($6,000,000 available in 2022).
This grant program provides assistance for intermediary organizations to provide technical assistance and
capacity building to rural nonprofit community-based organizations, low-income rural communities, and
Federally-recognized Indian Tribes. Grants allow organizations to undertake projects related to community and
economic development by helping develop the capacity and ability of private, nonprofit community-based
housing and community development organizations, and low-income rural communities to improve
community facilities and community and economic development projects in rural areas. In addition, RCDI
supports regional innovation efforts and regional economic development, which can bring together multiple
units of government and nonprofit organizations, developing their capacities to collaborate to create needed
jobs and economic hubs through increased development.
The program awarded 32 grants for $5.7 million in 2021. Assistance ranged from $250 thousand to $500
thousand with funds awarded to 23 States, the District of Columbia, and Puerto Rico.
(6) An increase of $5,000,000 for Tribal College Grants ($5,000,000 available in 2022).
The CF Tribal College Grants Program provides funding to 1994 Land Grant Institutions (Tribal Colleges) to
purchase equipment and make capital improvements to educational facilities. Eligible projects include, but are
not limited to schools, libraries, dorms, education equipment, and vehicles. Tribal colleges and universities
maintain, preserve, and restore Native languages and cultural traditions, offer a high-quality college education,
and provide career and technical education, job training, and other career-building programs. An educated and
skilled workforce is essential for attracting new business, quality jobs, and economic prosperity. Typically, the
funding is used for classrooms, dormitories, libraries and other on-campus education facilities and equipment.
The cost of facilities and equipment associated with STEM (Science, Technology, Engineering, and Math)
education; including chemistry labs, computer aided design equipment, and 3-D printers; is usually
significantly higher than other educational facilities.
The Tribal College Grant Program, during a typical fiscal year, fully obligates 100 percent of the appropriated
funding. In 2021, RHS obligated $5 million. The funding provided 29 grants to 1994 Land Grant Tribal
colleges in 12 states, and the average grant amount was $172,609. These grants supported high-quality
education, career-building opportunities, and expansion of STEM education opportunities in Tribal colleges
and universities. Seven grants were awarded to tribal colleges and universities in Montana; four in North
Dakota; three in South Dakota; two each in Arizona, Michigan, Minnesota, Nebraska, New Mexico, and
Wisconsin; and one each in Alaska, Oklahoma, and Washington. In 2021, grants went towards program
categories that did not receive funding in 2020 such as Distance Learning, Cultural and Educational Related
Services, and Commercial and Industrial Machinery and Equipment. The additional $5 million will increase
support for the expansion of STEM education and other career building opportunities. This funding can be
used to improve infrastructure generally and specifically for tribal colleges was a top priority listed by tribal
leaders. This program is oversubscribed and underfunded and is one of the few and more flexible resources for
tribal colleges for Community Facility infrastructure.
(7) A decrease of $6,000,000 for Economic Impact Initiative Grants ($6,000,000 available in 2022).
This program was not requested in the 2022 budget and is not requested in the 2023 budget. Projects funded
with this program can use the funding available in other Community Facilities loan and grant programs. In
2021, the agency obligated $6.0 million towards 150 grants. Approximately $1.2 million in funds went
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-60
towards Other Fire/Rescue & Public Safety Related Services, $0.9 million towards police cars, and
approximately $0.4 million each for rescue and ambulance service equipment building and fire protection
equipment. Beyond funds for public protection services, grant funds were obligated towards projects for
elementary and secondary schools, child and youth services, and child day care services.
(8) A decrease of $2,000,000 for Community Facilities Hospital Pilot Project ($2,000,000 available in 2022).
This program was not requested in the 2022 budget and is not requested in the 2023 budget. The Agency
obligated the full $2 million in 2021 to one entity. This type of assistance can be provided by the increase in
Community facilities grants.
GEOGRAPHIC BREAKDOWN OF OBLIGATIONS
Table RHS-57. Community Facilities Direct Loans Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Enacted
2022
Estimated
2023
Estimated
Alabama
$15,593
$3,360
-
-
Arizona
3,433
3,292
-
-
Arkansas
600
-
-
-
California
1,241
26,176
-
-
Colorado
19,424
15,138
-
-
Connecticut
40
-
-
-
Delaware
5,940
-
-
-
Florida
5,361
1,271
-
-
Georgia
13,850
17,084
-
-
Idaho
8,633
2,065
-
-
Illinois
5,510
78,789
-
-
Indiana
1,645
12,300
-
-
Iowa
88,899
70,226
-
-
Kansas
58,211
23,865
-
-
Kentucky
30,261
602
-
-
Louisiana
85,222
13,170
-
-
Maine
6,038
4,130
-
-
Massachusetts
-
6,665
-
-
Michigan
20,070
51,278
-
-
Minnesota
71,822
52,569
-
-
Mississippi
7,008
-
-
-
Missouri
5,262
1,606
-
-
Montana
44
466
-
-
Nebraska
11,649
32,287
-
-
Nevada
2,060
9,361
-
-
New Hampshire
27,403
1,995
-
-
New Jersey
20
114,568
-
-
New Mexico
-
147
-
-
New York
10,030
67,415
-
-
North Carolina
114,588
59,733
-
-
North Dakota
122,929
27,032
-
-
Ohio
20,937
46,338
-
-
Oklahoma
189
-
-
-
Oregon
5,500
-
-
-
Pennsylvania
66,901
16,085
-
-
Puerto Rico
-
4,161
-
-
South Carolina
44,720
65,723
-
-
South Dakota
31,882
380
-
-
Tennessee
148,771
77,495
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-61
State/Territory/Country
2020
Actual
2021
Enacted
2022
Estimated
2023
Estimated
Texas
5,781
3,367
-
-
Utah
9,675
44,142
-
-
Vermont
65,497
6,010
-
-
Virginia
5,783
15,398
-
-
Washington
36,710
166,905
-
-
West Virginia
5,883
8,100
-
-
Western Pacific
21,700
2,665
-
-
Wisconsin
34,242
2,767
-
-
Wyoming
20,183
2,354
-
-
Distribution Unknown
-
-
$1,684,000
$1,648,000
Obligations
1,267,840
1,158,479
1,684,000
1,648,000
Table RHS-58. Community Facilities Guaranteed Loans Geographic Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
-
$71,185
-
-
Arizona
-
4,563
-
-
California
$1,215
3,478
-
-
Colorado
3,657
3,590
-
-
Florida
6,092
14,151
-
-
Hawaii
1,775
-
-
-
Illinois
-
24,175
-
-
Iowa
1,000
1,968
-
-
Kansas
13,384
-
-
-
Kentucky
4,750
-
-
-
Louisiana
8,005
1,500
-
-
Maine
3,400
-
-
-
Michigan
1,800
-
-
-
Minnesota
3,000
3,443
-
-
New Jersey
-
10,277
-
-
New York
-
20,107
-
-
North Carolina
9,647
2,461
-
-
North Dakota
21,000
6,000
-
-
Oklahoma
290
-
-
-
South Carolina
1,521
17,009
-
-
South Dakota
7,518
-
-
-
Texas
1,640
11,615
-
-
Utah
3,224
6,682
-
-
Washington
-
40,145
-
-
Wisconsin
7,800
-
-
-
Distribution Unknown
-
-
$153,100
$155,517
Obligations
100,718
242,349
153,100
155,517
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-62
Table RHS-59. Community Facilities Grants Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$730
$412
-
-
Alaska
151
71
-
-
Arizona
498
470
-
-
Arkansas
1,755
914
-
-
California
1,323
1,584
-
-
Colorado
517
301
-
-
Connecticut
100
147
-
-
Delaware
190
114
-
-
Florida
969
953
-
-
Georgia
958
1,301
-
-
Hawaii
62
-
-
-
Idaho
102
64
-
-
Illinois
354
721
-
-
Indiana
557
556
-
-
Iowa
474
480
-
-
Kansas
604
279
-
-
Kentucky
1,046
819
-
-
Louisiana
564
-
-
-
Maine
450
330
-
-
Maryland
265
292
-
-
Massachusetts
214
220
-
-
Michigan
1,359
1,425
-
-
Minnesota
636
457
-
-
Mississippi
1,500
768
-
-
Missouri
794
700
-
-
Montana
291
214
-
-
Nebraska
213
246
-
-
Nevada
247
181
-
-
New Hampshire
354
301
-
-
New Jersey
314
220
-
-
New Mexico
473
448
-
-
New York
879
856
-
-
North Carolina
1,252
1,500
-
-
North Dakota
365
270
-
-
Ohio
1,002
110
-
-
Oklahoma
1,917
1,017
-
-
Oregon
367
161
-
-
Pennsylvania
1,110
1,552
-
-
Puerto Rico
50
-
-
Rhode Island
145
474
-
-
South Carolina
2,511
2,310
-
-
South Dakota
413
10
-
-
Tennessee
1,185
841
-
-
Texas
1,046
1,520
-
-
Utah
191
175
-
-
Vermont
774
652
-
-
Virginia
1,214
1,742
-
-
Washington
543
303
-
-
West Virginia
583
480
-
-
West Pacific
50
-
-
-
Wisconsin
666
724
-
-
Wyoming
48
139
-
-
Distribution Unknown
-
-
$32,000
$52,000
Obligations
34,372
29,821
32,000
52,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-63
Table RHS-60. Rural Community Development Initiative Grants Geographic Breakdown of Obligations
(thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
-
$193
-
-
Alaska
-
122
-
-
Arkansas
-
250
-
-
California
$500
500
-
-
Colorado
725
-
-
-
Delaware
210
-
-
-
Georgia
224
249
-
-
Hawaii
368
-
-
-
Idaho
131
-
-
-
Indiana
-
185
-
-
Iowa
142
150
-
-
Kentucky
180
50
-
-
Maine
-
194
-
-
Maryland
50
663
-
-
Massachusetts
671
250
-
-
Minnesota
250
160
-
-
Montana
240
186
-
-
Nebraska
165
-
-
-
New Hampshire
125
192
-
-
New Mexico
220
-
-
-
New York
-
485
-
-
North Carolina
250
-
-
-
Ohio
250
250
-
-
Oklahoma
303
125
-
-
Oregon
250
-
-
-
Pennsylvania
110
-
-
-
Puerto Rico
-
90
-
-
South Dakota
-
410
-
-
Tennessee
250
250
-
-
Texas
608
-
-
-
Utah
-
250
-
-
Vermont
-
250
-
-
Virginia
100
180
-
-
Washington
182
100
-
-
Distribution Unknown
-
-
$6,000
$12,000
Obligations
6,504
5,733
6,000
12,000
Table RHS-61. Economic Impact Initiative Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alaska
-
$22
-
-
Arizona
$107
100
-
-
Arkansas
144
387
-
-
California
415
917
-
-
Colorado
-
80
-
Florida
177
-
-
-
Georgia
213
163
-
-
Illinois
-
105
-
-
Iowa
825
408
-
-
Kentucky
166
157
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-64
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Louisiana
131
97
-
-
Maine
92
86
-
-
Maryland
80
80
-
-
Michigan
237
391
-
-
Minnesota
116
109
-
-
Mississippi
145
137
-
-
Missouri
151
143
-
-
Montana
-
44
-
-
Nebraska
79
73
-
-
Nevada
70
41
-
-
New Hampshire
76
71
-
-
New Jersey
69
69
-
-
New Mexico
86
68
-
-
New York
164
155
-
-
North Carolina
213
203
-
-
North Dakota
68
63
-
-
Ohio
182
100
-
-
Oklahoma
548
111
-
-
Oregon
66
58
-
-
Pennsylvania
183
886
-
-
South Carolina
154
153
-
-
South Dakota
94
-
-
-
Tennessee
179
170
-
-
Texas
67
-
-
-
Utah
-
7
Vermont
72
66
-
-
Virginia
169
245
-
-
Washington
-
105
-
-
West Virginia
112
-
-
-
Western Pacific
36
50
-
-
Distribution Unknown
-
$5,700
-
Obligations
5,686
6,017
5,700
-
Table RHS-62. Tribal College Grants Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alaska
$181
$175
-
-
Arizona
362
327
-
-
Michigan
161
351
-
-
Minnesota
404
351
-
-
Montana
1,169
1,228
-
-
Nebraska
363
307
-
-
New Mexico
363
351
-
-
North Dakota
907
702
-
-
Oklahoma
181
175
-
-
South Dakota
543
511
-
-
Washington
181
175
-
-
Wisconsin
363
351
-
-
Distribution Unknown
-
-
$5,000
$10,000
Obligations
5,178
5,006
5,000
10,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-65
Table RHS-63. Community Facilities Disaster Grants (Cumulative) Geographic Breakdown of Obligations
(thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$697
$1,722
-
-
Arizona
295
345
-
-
Arkansas
1,108
991
-
-
California
5,608
2,907
-
-
Colorado
-
749
-
-
Florida
1,186
2,750
-
-
Georgia
1,377
1,885
-
-
Hawaii
-
200
-
-
Idaho
-
90
-
-
Illinois
1,074
1,983
-
-
Indiana
478
582
-
-
Iowa
1,235
8,145
-
-
Kansas
360
1,744
-
-
Kentucky
2,718
2,914
-
-
Louisiana
97
0
-
-
Maryland
500
957
-
-
Massachusetts
-
1,031
-
-
Michigan
1,445
397
-
-
Minnesota
1,464
1,821
-
-
Mississippi
1,549
1,482
-
-
Missouri
4,625
2,458
-
-
Montana
-
238
-
-
Nebraska
787
2,100
-
-
New Hampshire
544
1,401
-
-
New Jersey
474
-
-
New York
149
2,291
-
-
North Carolina
8,368
4,503
-
-
North Dakota
167
551
-
-
Ohio
3,167
1,196
-
-
Oklahoma
6,892
1,839
-
-
Oregon
1,274
196
-
-
Pennsylvania
2,481
396
-
-
South Carolina
249
4,300
-
-
South Dakota
475
284
-
-
Tennessee
3,096
4,476
-
-
Texas
16
778
-
-
Vermont
1,340
507
-
-
Virginia
952
4,013
-
-
Washington
573
663
-
-
West Virginia
135
544
-
-
Western Pacific
75
383
-
-
Wisconsin
2,450
2,587
-
-
Obligations
59,480
68,396
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
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Table RHS-64. Community Facilities Technical and Training (TAT) Grants Geographic Breakdown of
Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Arizona
151
-
-
-
Arkansas
150
150
-
-
Colorado
148
-
-
-
Georgia
-
150
-
-
Illinois
150
-
-
-
Louisiana
-
81
-
-
Iowa
150
150
-
-
Kentucky
54
-
-
-
Maine
-
50
-
-
Maryland
150
214
-
-
Montana
-
50
-
-
New Hampshire
110
-
-
-
Oklahoma
87
164
-
-
South Carolina
-
50
-
-
Tennessee
-
150
-
-
Vermont
150
150
-
-
Virginia
150
-
-
-
Washington
50
-
-
-
West Virginia
-
141
-
-
Obligations
1,500
1,500
-
-
Table RHS-65. Community Facilities Modification Cost Geographic Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
$22,228
-
-
Distribution Unknown
-
-
$25,000
-
Obligations
-
22,228
25,000
-
Table RHS-66. Rural Hospital Pilot Program Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Maryland
$1,000
$2,000
-
-
Distribution Unknown
-
-
$2,000
-
Obligations
1,000
2,000
2,000
-
Table RHS-67. American Rescue Act Administrative Expenses Geographic Breakdown of Obligations (thousands
of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
District of Columbia
-
$25,000
-
-
Obligations
-
25,000
-
-
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-67
Table RHS-68. American Rescue Act Grants Geographic Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
-
-
$175,000
$300,000
Obligations
-
-
175,000
300,000
*This table represents American Rescue Act Grants
Table RHS-69. Administrative Expenses: Economic Impact Initiative Breakdown of Obligations (thousands of
dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Distribution Unknown
$589
$300
$300
-
Obligations
589
300
300
-
Table RHS-70. Direct Community Facility Variable Rate Loans Breakdown of Obligations (thousands of dollars)
State/Territory/Country
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
Alabama
-
$309,145
-
-
Obligations
-
309,145
-
-
CLASSIFICATION BY OBJECTS (DISCRETIONARY)
Table RHS-71. Classification by Objects (thousands of dollars)
Item
No.
Item (Discretionary)
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
41.0
Grants, subsidies, and contributions
$114,308
$166,000
$76,000
$74,000
99.9
Total, new obligations
114,308
166,000
76,000
74,000
CLASSIFICATION BY OBJECTS (MANDATORY)
Table RHS-72. Classification by Objects (thousands of dollars)
Item
No.
Item (Mandatory)
2020
Actual
2021
Actual
2022
Estimated
2023
Estimated
41.0
Grants, subsidies, and contributions
-
$25,000
$175,000
$300,000
99.9
Total, new obligations
-
25,000
175,000
300,000
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
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STATUS OF PROGRAMS
The Rural Housing Service (RHS) offers a variety of programs to build or improve housing and essential community
facilities in rural areas. Funds are disseminated via loans, grants, and loan guarantees for purposes that include, but
are not limited to, single and multifamily housing, child- care centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, and housing for farm laborers. RHS also provides
technical assistance loans and grants in partnership with non-profit organizations, Indian tribes, state and Federal
government agencies and local communities. RHS programs support the critical infrastructure of housing by
increasing housing affordability and providing homes, which improves the quality of life for rural families.
Single-Family Housing (SFH) Programs
The RHS operates/administers a number of Single-Family Housing (SFH) programs that provide loans, grants, and
guarantees to finance the construction, purchase, and repair of single family homes that enable very low-, low-, and
moderate-income individuals and families to live in decent, safe, sanitary, and affordable housing. In FY 2021, RHS
obligated 135,181 SFH loans, grants, and guarantees totaling $24.02 billion, as detailed in the following sections.
The foreclosure and eviction moratorium announced by USDA, the Single-Family Housing Direct Loan Program
(SFHDLP), and the Single-Family Housing Guaranteed Loan Program (SFHGLP) on August 28, 2020, was
subsequently extended until July 31, 2021. Beyond July 31, 2021, USDA continues to support homeowners
experiencing financial hardship due to the pandemic by making loss mitigation options available to help keep them
in their homes. RHS recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing
affordability crisis in the United States.
The American Rescue Plan Act of 2021 (ARPA) provided $39 million in budget authority through September 2023
to help refinance direct loans under the Single-Family Housing Loan Program and the Single-Family Housing
Repair Loans and Grants. SFH is expecting to obligate most of the funding in the next coming fiscal year.
Single-Family Housing Direct Loan Program (SFHDP)
Under this program, also known as the Section 502 Direct Loan Program, RHS directly underwrites and services
fixed-interest mortgage loans to low- and very low-income individuals and families who are unable to obtain credit
elsewhere. Funds may be used to purchase, build, renovate, or repair a home, and to prepare a site, including
providing water and sewage facilities. The program also provides “supervised credit”, including pre-loan and post-
loan credit counseling to borrowers to help them maintain their homes during financial crises. Loans are subsidized
at a graduated interest rate from one percent over Treasury’s cost of money, depending on applicant’s income.
Applicants may obtain 100 percent financing and loans are for up to 33 years (38 years for those with incomes
below 60 percent of the area median household income). Interest rates are determined so that a family pays from 22
to 26 percent of their income for principal, interest, taxes, and insurance. To make loans more affordable, RD
funding can be combined/leveraged with other programs such as:
• Habitat for Humanity;
• Local Housing Authorities;
• Community Action Council; and
• Other Funders.
Fiscal Year 2021 data and demographics for the SFHDP:
• Total Obligations: RHS obligated 5,355 SFHD Loans totaling $1.0 billion.
• Borrower Income Eligibility: Total obligations include $363.3 million that was obligated to very low-income
borrowers, and $636.9 million was obligated to low-income borrowers Also, included in total obligations was
$7.8 million for Colonias.
• R
ace: Composition of SFHDP borrowers was 74 percent white and 26 percent other ethnicities.
Current Activities: COVID-Related:
• The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a mortgage payment forbearance
option for all borrowers who, directly or indirectly, suffer a financial hardship due to novel coronavirus
(COVID-19). On September 27, 2021, the Agency announced the removal of the September 30, 2021, deadline
for COVID-19 affected Direct Loan borrowers to request mortgage payment assistance. Instead, Direct Loan
Borrowers may request assistance until the end of the National Emergency is declared.
• The ARPA funds for this program have a primary focus of helping existing SFHDP borrowers, who have been
approved for COVID-19-related payment moratoriums, refinance their mortgages. The goal for these funds is to
help ensure USDA borrowers’ payments stay affordable once the moratorium period ends.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
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Single-Family Housing Guaranteed Loan Program (SFHGP)
Under this program, also known as the Section 502 Guaranteed Loan Program, RD guarantees mortgage loans made
by qualified commercial lenders to eligible applicants to purchase new or existing dwellings, or new manufactured
homes in rural areas. The program is designed to serve low- and moderate-income rural residents who have a steady
income but are unable to obtain adequate housing through conventional financing. The mortgage guarantee
substantially reduces the risk for lenders, thus encouraging them to make loans to rural residents who have only
modest incomes and modest collateral. There are many benefits to the SFHGP over a conventional mortgage, which
include:
• Zero money down financing;
• No private mortgage insurance;
• Closing costs and lender fees can be rolled into the loan;
• Gifted funds, grants, Mortgage Credit Certificates (MCC's) and seller concessions can be used;
• Renovation and repair costs can be included in the loan amount; and
• Not restricted to first-time homebuyers.
Fiscal Year 2021 data and demographics for SFHGP:
• Total Obligations: The total 2021 number of SFHGP loans and obligations were as follows:
o Fee Purchase loans: 117,712 loans with total obligations of approximately $21.1 billion.
o Fee Refinanced loans: 9,677 loans with total obligations of approximately $1.7 billion.
o Total SFHG loans combined: 127,389 loans with total obligations of $22.7 billion.
• Initially the Agency requested and received an additional $6 billion in loan level (from $24 billion to $30
billion) for the SFHGLP based on the Q1 and Q2 obligation rates; however, the change in housing market
conditions in Q3 and Q4 slowed obligation rates considerably. Nevertheless, the total SFHGLP obligations in
2021 were the second-highest obligation funding amount in program history.
• Income: 2021 data indicate the following:
o Fee Purchase Loans: moderate-income total obligations of ~$16.2 billion; low-income total obligations of
~$4.8 billion.
o Fee Refinanced Loans: moderate-income obligations of ~$1.3 billion; low-income obligations of ~$0.3
billion.
• Race: 2021 data indicate the following:
o Fee Purchase Loans: 85.5 percent white; 14.5 percent non-white.
o Fee Refinanced Loans: 91.3 percent white; 8.7 percent non-white.
Current Activities: Regulatory-Related:
Proposed Rule: On June 9, 2021, RHS published a Proposed Rule titled, “Single Family Housing Guaranteed Loan
Program” (7 CFR 3555). The proposed rule changes will strengthen underwriting practices and promote an efficient
and robust management and oversight structure of lenders in the SFHGLP. The update includes requirements for
Federally supervised lenders, minimum net worth and experience for non-supervised lenders, approved lender
participation requirements, treatment of applicants with delinquent child support payments, and builder credit
requirements. The comment period for this Proposed Rule closed on August 9, 2021, and the agency is in the
process of reviewing comments.
FY 2021 data for all other Single Family Housing Programs is provided in the table below:
Program
Total Obligated
(Dollars in
Million)
Total No.
Loans or
Grants
Sec. 509 Compensation for Construction Defects
$.05
3
Sec. 502 Credit Sales of Acquired Property SFHD
.2
2
Sec. 504 Housing Repair Grants
24.6
3,709
Sec. 504 Housing Repair Loans
14.8
2,289
Sec. 523 Mutual and Self-Help Housing Grants
31.9
52
Sec. 533 SFHD Grant Funds
13.7
117
Protecting Animals with Shelter Grants
2.4
5
TOTAL
87.7
6,177
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-70
The challenges presented by the pandemic (availability of contractors, interest in applying for home repairs given
the pandemic, etc.) had some impact on the decrease in obligations between 2020 and 2021 for Sec 504 Housing
Repair loans and grants.
Multi-Family Housing Programs
The RHS operates/administers the Multi-Family Housing (MFH) programs that provide loans, grants, and loan
guarantees to eligible applicants to finance the preservation/revitalization, development, construction, and purchase
of MFH properties in rural areas for purposes of enabling very low-, low-, and moderate-income individuals and
families to live in decent, safe, sanitary, and affordable housing. In 2021, nine MFH programs obligated funding
totaling $355.7 million and provided 7,466 loans as detailed in the following sections.
Section 538 Multi-Family Housing (MFH) Guaranteed Rural Rental Housing (GRRH) Loan Program
The 2021 program accomplishments include obligations of 96 loans totaling $230 million. To increase program
utilization, the RHS began collaborating with State Housing Finance Agencies to encourage expanded rural
eligibility for Low Income Housing Tax Credit allocations, which are a key driver for equity investment in the
Section 538 program.
Rental Assistance
To maintain section 515 rural rental housing and section 514 farm labor housing loan portfolios, MFH obligated
over $1.51 billion in rental assistance. This program provided assistance to 284,194 tenants. This rental subsidy
maintains housing affordability for tenants, ensuring that rents do not exceed 30 percent of income. In addition to
increasing household security, this assistance enables greater property and community stability in rural areas
throughout the country. Rental Assistance (RA) funding was used as follows: Elderly properties, 29 percent; family
properties, 67 percent; and labor housing, 4 percent. The average household income of tenants in 2021 was $14,589;
the average income of households receiving RA was $12,449. The race/ethnicity is broken down as follows:
• White, Non-Hispanic, 64.69 percent;
• Black, Non-Hispanic, 20.30 percent;
• Asian, Hispanic/Latino, 11.91 percent;
• American Indian/Alaskan Native, 1.64 percent;
• Pacific Islander, 0.70 percent; and
• Non-Designated/Multiple, 0.76 percent
.
Another notable fact is that 64 percent of the portfolio is occupied by tenants where the head of household is elderly
or disabled. Additionally, the ARPA of 2021 provided $100 million through September 2022 in RA for low-income
and elderly tenants.
As with the SFHGP and SFHDP programs, the eviction and foreclosure moratorium for affected multi-family
housing residents was extended through July 31, 2021. However, beyond that date USDA will continue to offer
emergency assistance to USDA multi-family housing property owners and tenants who are experiencing financial
hardship due to the pandemic. This halt in residential evictions allowed the Agency to extend relief to the tens-of-
thousands of Americans who rely on USDA-supported multifamily housing communities.
Current Activities:
The RHS is in the process of updating current regulations to include updated Violence Against Women
Reauthorization Act (VAWA) policies. The updates were incorporated in a proposed
rule that was published in the
Federal Register on September 23, 2020, (85 FR 59682) and is working to publish a Final Rule after addressing the
comments received. In the interim, the Agency provided internal guidance via an Unnumbered Letter (UL); these
updates apply to Section 515 Rural Rental Housing, Section 514/516 Farm Labor Housing, Section 538 Guaranteed
Rural Rental Housing, and Section 533 Housing Preservation Grant programs.
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
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The following table provides financial data for all MFH programs:
Community Facilities Programs
The RHS administers Community Facilities (CF) programs that provide loans, grants, and guarantees to help rural
communities build or improve essential community facilities and community infrastructure. Public bodies, non-
profit organizations, and federally recognized Indian Tribes can use these funds to construct, expand or improve
facilities that provide health care, education, public safety, and public services. In addition, grants for disaster relief,
technical assistance and training, and community and economic development support rural communities in building
long-term capacity and tackling urgent challenges such as disaster recovery.
These loans and grants help ensure that rural areas enjoy the same basic quality of life and services as residents of
urban areas. In 2021, 17 CF programs obligated 1,672 grants totaling $118.5 million, and 525 loans totaling ~$1.71
billion, as detailed in the following sections. Approximately 14 percent of these loans/grants were made in distressed
communities identified as having persistent poverty, low employment, and high population loss.
The following table provides financial data for CF Grant Funding:
Program
Total
Obligations
(Dollars in
Millions)
Total No.
CF
Grants
Community Facility 2019 Disaster Grants
$68.5
742
Community Facility Grants
23.7
563
Rural Community Development Initiative Grants
5.7
32
Economic Impact Initiative Grants
6.0
150
Community Facility Native American Tribes Grants
5.0
29
Community Facility Persistent Poverty Grants
5.1
120
Essential CF Technical Assistance and Training Grants
1.5
14
Community Facility Rural Hospital Pilot Program Grants
2.0
1
CF Grants – SECD
0.4
11
Community Facility EZ/EC Grants
0.6
10
TOTAL
118.5
1,672
Program
Total Obligated
(Dollars in
Million)
Total No. Loans
or Grants
Sec. 514 Direct Farm Labor Housing Loans
$3.1
2
Sec. 515 Rural Rental Housing (RRH) New Construction Loans
37.4
44
Sec. 515 RRH Rehab and Repair Loans (Persistent Poverty)
1.1
3
Sec. 516 Farm Labor Housing Grants
1.6
1
Sec. 515 MFH Revitalization and Preservation Grants
0.4
3
Sec. 515 MFH Revitalization and Preservation Loans
47.5
56
Rural Housing Voucher Grants
34.6
7,261
Rental Assistance
1,510.0
16,217
TOTAL
$1,635.7
23,587
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-72
The following table provides financial data for CF Loan Funding
:
Program
Total
Obligations
(Dollars in
Millions)
Total No.
CF
Loans
Direct Community Facility Loans
$1,122.5
435
Direct Community Facility Loans - Persistent Poverty
18.3
17
Direct Community Facility Loans – SECD
17.7
4
Direct Community Facility Variable Rate Loans
309.1
41
Guaranteed Community Facility Loans
242.3
28
TOTAL
1,709.9
525
The ARPA of 2021 included up to $500 million in Community Facility Program funds to help rural hospitals and
local communities address needs related to the COVID-19 pandemic such as broadening access to COVID-19
vaccines and providing medical supplies to increase medical surge capacity. The Community Facility ARPA for
Rural Health Care Facilities NOFA was published August 12, 2021, with an initial application window of 60 days;
no obligations occurred in FY 2021.
Current Activities/Progress:
CF Funding for Health-Care-Related Improvements and Emergency Response Services:
USDA announced an investment of $266 million in March 2021 to build and improve critical community facilities
to benefit nearly three million rural residents in 16 states and Puerto Rico. This funding includes $156 million to
support health-care-related improvements and emergency response services that will benefit nearly one million rural
residents in nine states and Puerto Rico. The assistance will fund a variety of essential community services,
including emergency response vehicles and equipment. As an example, the North Olympic Healthcare Network in
Washington will use a $4 million loan to purchase the building it currently leases to provide community health
services. Ownership of the building will enable the network to lower costs and provide more services to its clients,
most of whom are low-income or lack health insurance. This project will benefit more than 19,000 rural residents
.
Critical Community Facilities- Building and Upgrading Schools, Libraries, Clinics, and Public Safety
Facilities:
In October 2020, USDA announced an investment of $871 million across 256 projects to benefit 3.5 million rural
residents in 43 States and Guam. Some of the projects included in this effort are as follows:
The East Baton Rouge Parish, Louisiana, Hospital Service District 1 received a $61 million loan to renovate 37,000
square feet of the hospital and add an 82,000 square-foot four-story medical tower. The addition will include 48
acute patient care rooms, surgical and intensive care units, nurse’s stations, and administrative areas; the expanded
facility will provide a variety of specialized care to better serve the community.
The Bay Mills Indian Community in Michigan will use a $6 million loan to construct a 34,000 square-foot medical
office building in the Eastern Upper Peninsula in Chippewa County. The Bay Mills Indian Community Reservation
is located in a federally-designated Medically Underserved Area and a Health Professional Shortage Area for
primary care, dental and mental health. More than 20 percent of the community’s residents are people with
disabilities. This investment will help provide medical, dental, pharmacy, lab, imaging, behavioral health, optical,
community health and traditional healing services.
Helping Communities with Long-Term Recovery from Natural Disasters (Hurricanes, Floods, and Tornados)
USDA is investing in 233 projects and of these, CF provided 74 awards, totaling $4 million. An example project
from this portfolio is the Potters Hill Volunteer Fire Department in North Carolina, which is receiving a $375,000
disaster grant and a $795,000 direct loan to replace three, high-mileage, unreliable fire trucks. The new trucks will
provide essential fire protection and emergency services primarily for rural residents and businesses in Duplin
County, an area that sustained considerable damage from both Hurricane Matthew in 2016 and Hurricane Florence
in 2018.
Rural Hospital Technical Assistance Cooperative Agreement:
In September 2021, CF successfully obligated $2 million in appropriated funds for the existing cooperative
agreement with National Rural Health Association (NRHA) to provide necessary technical assistance to strengthen
2023 USDA EXPLANATORY NOTES – RURAL HOUSING SERVICE
32-73
rural hospitals to support the healthcare needs of rural communities. This brings the total cooperative agreement
funding to $3 million to be used by September 30, 2023. This agreement implements Section 753 from the FY 2020
Appropriations Bill, which provided an initial $1,000,000 for a pilot technical assistance program to assist rural
hospitals to improve long-term operations and financial health. NRHA contracted with three financial/accounting
firms to provide the assistance.
In outreach to RD State Offices, CF identified an initial priority list of 32 hospitals. With the additional funding
added to the agreement, NRHA and CF will collaborate with RD State Offices to identify other potential hospitals
for assistance. To date, CF was able to provide recommendations to improve financial and operational efficiencies to
four rural hospitals
Rural Community Development Initiative RCDI:
RCDI provides funding to help non-profit housing and community development organizations, low-income rural
communities and federally recognized tribes support housing, community facilities, and community economic
development projects in rural areas.
Grant funds may be used for but are not limited to (a) training recipients to conduct a program on home-ownership
education; (b) training recipients to conduct a program for minority business entrepreneurs; (c) providing technical
assistance to recipients on how to effectively prepare a strategic plan; (d) provide technical assistance to recipients
on how to access alternative funding sources; (e) building organizational capacity through board training; (f)
developing training tools, such as videos, workbooks, and reference guides to be used by the recipient; (g) providing
technical assistance and training on how to develop successful childcare facilities; and (h) providing training on
effective fundraising techniques., community facilities, and community economic development projects in rural
areas.
The FY 2021 NOSA was published on January 11, 2021. In 2021, priority was given to applications that supported
the Agency’s goal to reduce morbidity and mortality associated with substance use disorder (including opioid
misuse) in high-risk rural communities. In 2021, 32 RCDI grants totaling $5.7 million were awarded.
Knoxville Leadership Foundation (KLF) received a $250,000 RCDI grant for the “Capacity building to fight
substance misuse in East Tennessee” project, that focused on ten rural substance abuse programs over two years.
KLF will strengthen the ability of recipients to understand and address substance use disorder and continuing issues
related to the COVID-19 pandemic, in addition to addressing capacity-building areas such as leadership, program
development, sustainability, and community engagement. Implementation will include assessment of recipients,
creation of organizational improvement plans, work with consultants to address specific priorities, attendance at
group training sessions that focus on substance use disorder (opioids) and COVID-19, coaching by KLF staff, and
final assessments.
