What does this program do?
This program provides vouchers to protect eligible tenants in Multifamily Direct Loan properties who may face hardship when a final loan payment is made on the property.
Who may apply for this program?
Tenants that live in Multifamily Direct Loan properties at the time final payment is made.
Where can tenants use the vouchers?
The voucher can be used to supplement their rental payments at the former Multifamily Direct Loan property, or at any non-subsidized rental unit in the United States that meets Rural Development’s housing quality standards (provided the non-subsidized property agrees to accept the voucher).
What is the voucher amount?
The amount of the voucher is equal to the difference between a tenant’s current contribution for rent, and area market rent as determined by Rural Development – meaning rent charged at similar complexes at non-subsidized rates – for that unit size. For example, if an eligible tenant currently pays $300 a month for a 1-bedroom unit and the area market rent is $475 for a 1-bedroom unit, the maximum voucher amount for that tenant is $175.
Who Handles the Funds?
Funds are paid directly to property owners on the tenant’s behalf.
What are key factors for this program?
Tenants have 10 months from the property’s final loan payment date to decide whether they want to use their Rural Development voucher. The voucher holder’s initial benefit period is one year, subject to renewal based on the tenant’s continued eligibility and funding availability. The voucher may not be used at rental units subsidized by other housing programs, such as U.S. Housing and Urban Development (HUD) Section 8, or public housing.
What governs this program?
Multifamily Rural Development Voucher Program Guide, available at this link:
How do I get more information?
Please visit the “Quick Links” section found at Multifamily Housing webpage or email the Rural Development Voucher Program Office at RDVoucher@usda.gov.
NOTE:
Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What Governs This Program?” You may also contact our Multifamily Housing staff for assistance. You will find additional forms, resources, and program information at rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.
Please visit the “Quick Links” section found at Multifamily Housing webpage or email the Rural Development Voucher Program Office at RDVoucher@usda.gov.