Category: Federal Incentives, Grants & Loans
AGENCY: US Department of Agriculture (USDA) Rural Development (RD), Rural Housing Service (RHS)
DESCRIPTION: Loans for public or private non-profit organizations to buy and develop building sites.
• Construction of access roads, streets and utilities.
• Section 523 Loan funds may be used to purchase land to be used by mutual self-help participants.
• Sites must be developed for low- and moderate-income families. ?
• Maximum Program Benefits: Loans in excess of $200,000 must have prior approval of the National Office.
• Maturities: Two years on Direct Loans or Self-Help Loans.
• Rates: 3% on direct loans for self-help sites only (523) and the rate for 534 Loan is determined ?annually. ?
• Limited to public or private non-profit organizations.
• Sites developed with a Section 524 Loan must be for low- and moderate-income housing, and may be ?sold to families, non-profit organizations, public agencies and cooperatives.
• Sites developed with a Section 523 Loan can only be used for housing of low-income families ?participating in the mutual self-help program.
• Sites developed with a Section 523 Loan may be sold only to qualified families who will build homes ?by the self-help method.
• Sites developed with a Section 524 Loan may be used for dwellings for low and moderate income ?families and may be sold to families, non-profit organizations, public agencies and cooperatives eligible for assistance under any law which provides financial aid for housing. Such agencies include USDA Rural Development, HUD, VA, private lenders, non-profit organizations funded by federal, state or local governments, or state and local public agencies.
• For more information, visit http://www.rurdev.usda.gov/ or call (202) 690-1533.