The U.S. Department of Agriculture is making $70 million in subsequent loan funding for providers with Section 515 Rural Rental Housing loans to complete, improve, repair, or make modifications to multifamily housing projects that currently have a Section 515 loan or loan commitment.

The funding will be available through two application processes. First, applications received by April 30 will be reviewed for funding, with a priority placed on funding projects with identified loan purposes.  Second, USDA will announce additional Section 515 subsequent loan funding in a Notice of Solicitation of Applications (NOSA) that will be published later this year.

For applications received by April 30, priority consideration will be given to applications addressing at least one of the following needs:

• repairs or modifications to address health and safety findings or violations previously identified and documented by an Agency or Agency-authorized inspection or a code-enforcement agency, including the Agency’s recently launched Multifamily Housing Physical Inspection Pilot Program (MPIPP)
• repairs or modifications to comply with accessibility requirements previously identified and documented by the Agency or an Agency-authorized inspector
• loan requests associated with prepayment applications already in process and/or approved by the Agency to support preservation of the Section 515 portfolio under the requirements of 7 CFR 3560 Subpart N—Housing Preservation
• transfer applications currently in process and/or approved by the Agency that require additional funding to address financing gaps and/or meet Agency underwriting requirement
• loan requests to address financing gaps in previously approved or closed preservation transactions

The USDA RD MFH Production and Preservation Division will discuss the Section 515 Subsequent Loan program during a Webinar on March 23 from 2-3 p.m. ET.