© Housing Assistance Council, 2000

Permission is granted ONLY to nonprofit community-based organizations to reproduce and/or adapt this document, and only for their own use.

ISBN 1-58064-104-0

TABLE OF CONTENTS

1.  Introduction
   1. What is the Section 538 Guaranteed Rural Rental Housing Program?
   2. About This Guide
   3. Agency Names and Acronyms
2. RHS Rural Housing Programs
   1. Using RHS Rural Housing Programs
   2. RHS Service Area
   3. RHS/Rural Development Organization
   4. Locating Rural Development Area Offices
   5. Applicable Regulations
   6. Ordering Instructions
3. A Description of the Guaranteed Rural Rental Housing Program
   1. RHS/Rural Development's Role
   2. Lenders' Role and Eligibility
   3. Borrower/Developer Eligibility
   4. Tenants
   5. The Site
   6. Eligible Uses of Funds
   7. Environmental Requirements
   8. Loan Amounts and Terms
   9. Fees to RHS
   10. Extent of Guarantee
   11. Interest Credit (Subsidy)
4. The Loan Process
   1. Notice of Fund Availability and Application Process
   2. National Competition
   3. Allocation to the States
   4. Application Process
   5. Ranking Criteria for Applications
   6. Appeals of Adverse Decisions
5. Construction, Management, and Servicing
   1. Construction
   2. Management
   3. Servicing
6. Appendices
   1. Application Form and Documentation, Section 4.9 in HB-1-3565
   2. The GRRHP Origination Timeline, Exhibit 4-1 in HB-1-3565
   3. Review and Appeals of Adverse Agency Decisions, Attachment 1-A in HB-1-3565 Major Civil Rights Laws, Exhibits 7-4 and 7-5 in HB-1-3565
   4. Section 504 Requirements, Exhibit 3-2 in HB-1-3565
   5. Required Contents of a Market Study, Exhibit 3-6 in HB-1-3565
   6. The Income Projection, Exhibit 3-3 in HB-1-3565
      • The Expense Projection, Exhibit 3-4 in HB-1-3565
      • Net Operating Income, Exhibit 3-5 in HB-1-3565
   7. Actions to be Taken by Lender in Reviewing the Affirmative Fair Housing
   8. Marketing Plan, Exhibit 4-2 in HB-1-3565 Closing Documents to be Submitted as
   9. Part of the Final Application, Attachment 4-C in HB-1-3565 Supplemental
   10. GAGAS Audit Guide, Exhibit 7-2 in HB-1-3565 Tenant Grievance and Appeals
   11. Process Flowchart, Exhibit 8-2 in HB-1-3565
   12. Rural Development State Offices

This guide was prepared by Art Collings and Leslie R. Strauss of the Housing Assistance Council (HAC). The work that provided the basis for this publication was supported by funding under Cooperative Agreement H-21161 CA with the U.S. Department of Housing and Urban Development. Ndeye Jackson served as Government Technical Representative. The substance and funding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the United States Government.

HAC, founded in 1971, is a nonprofit corporation which supports the development of rural low-income housing nationwide. HAC provides technical housing services, loans from a revolving fund, housing program and policy assistance, research and demonstration projects, and training and information services.

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