Section 515 Rural Rental Housing is a

USDA The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...

rural housing program authorized under Section 515 of the

Housing Act of 1949 The American Housing Act of 1949 () was a landmark, sweeping expansion of the federal role in mortgage insurance and issuance and the construction of public housing. It was part of President Harry Truman's program of domestic legislation, the Fai ...

(42 U.S.C. 1485). The

Rural Housing Service The Rural Housing Service (RHS) is an agency of the United States Department of Agriculture (USDA). Located within the Department's Rural Development mission area. RHS operates a broad range of programs to provide moderate- low- and very-low-incom ...

(RHS) is authorized to make loans to provide rental housing for low- and moderate-income families in rural areas. Though rarely used for this purpose, Section 515 loans may also be used for congregate housing for the elderly and handicapped. Loans under the Section 515 program are made to individuals, corporations, associations, trusts, partnerships, or public agencies. The loans are made at market interest rates, but are subsidized with an interest credit subsidy that brings the effective rate of the loan to 1%. Loans are amortized for up to 50 years and have terms of 30 to 50 years depending on when the loan was made.

References

*{{CRS, article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf, author= Jasper Womach United States Department of Agriculture