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PROGRAM GOALS
The GRRHP was established to increase the
supply of moderately-priced housing in rural areas; ensure that housing is
affordable to low- and moderate-income rural residents whose incomes are 115
percent of area median income (AMI) or less; provide housing that is decent,
safe, sanitary, and competitive in the market; and foster risk-sharing
partnerships with public and private lenders. Under the program, the Agency
will provide credit enhancements to encourage private and public lenders to
make new loans for affordable rental properties that meet program
standards. Lenders will be expected to underwrite and service the loans.
The Agency will approve qualified lenders to participate and will monitor
lender performance to ensure that program requirements are met.
LOAN GUARANTEE PRODUCT
ELIGIBLE PURPOSES
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New construction and acquisition with
rehabilitation of at least $6,500/unit
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Guarantee
on permanent financing or a guarantee on a construction/permanent loan
combination
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Housing
with 5 or more adequate dwellings
ELIGIBLE USES
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All
hard costs
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Soft
costs - professional services, bond fees, developer’s fees, land
acquisition and development, financing costs
ELIGIBLE BORROWERS
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Individuals, partnerships, non-profit or
for-profit corporations
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State and local agencies, Trusts, Native
American Tribes
ELIGIBLE AREAS
ELIGIBLE LENDERS
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Lenders eligible for approval include HUD,
Ginnie Mae, Fannie Mae, and Freddie Mac approved multifamily lenders
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Lenders with multifamily lending experience
and demonstrated capacity to provide all aspects of loan processing, and
asset management functions, including disposition
BENEFITS TO LENDERS
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Up to 90% protection against loan losses
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Credit towards fulfillment of Community
Reinvestment Act requirements
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Secondary mortgage market participation
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Loans exempted from lender’s legal lending limits
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For the FY 2010 NOFA, no application or guarantee
fees
LOAN GUARANTEE FEATURES
Loan to Value (LTV)
Interest Rate
Repayment Term
Minimum and Maximum Loan Amount
PROGRAM
PARAMETERS
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Housing is available to families and
individuals whose income at initial occupancy does not exceed 115% of
the area median income. No re-certification of income is required
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Rent (including tenant-paid utilities) for
any unit at initial occupancy cannot exceed 30% of 115% of area median
income adjusted for family size
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Average rent (including tenant-paid
utilities) for all units in a project cannot exceed 30% of 100% of the
area median income adjusted for family size
GRRHP REGULATIONS & FORMS
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