The Rural Housing Service (RHS) within the U.S. Department of Agriculture issued a proposed rule that would eliminate the notice of funding availability (NOFA) for the Section 538 Guaranteed Rural Rental Housing Program. RHS is amending the regulation to align with the Housing Act of 1949, as amended, requirements, which will allow RHS to continue its application process under circumstances such as a Continuing Resolution. RHS will make an announcement when funds are available and accept applications on a continuous basis.
RHS hopes this will allow them to accept and process applications in a more fluid manner and better align Sec. 538 with the application process of tax credit financed properties. While Section 536 of the Housing Act of 1949, as amended broadly requires publication of the availability of funds, application procedures, and selection criteria in the Federal Register, it does not contain the annual notification requirement.
Comments are due by Feb. 15, 2019.