USDA Proposes Easier Loans for Rural Apartments
Published Date: 7/2/2026
Proposed Rule
Summary
The USDA’s Rural Housing Service wants to make it easier for owners of USDA-financed apartment buildings to get extra loans for buying those properties again. This change cuts red tape and helps keep affordable housing in good shape. If you’re involved, get your comments in by August 31, 2026, to have your say!
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Subsequent Loans Allowed for Acquisition
The USDA Rural Housing Service proposes to amend 7 CFR 3560.73(a) so the Agency may make subsequent multifamily housing (MFH) loans to a borrower to acquire properties that were initially financed by the Agency. This change explicitly adds "acquisition" as an eligible use of MFH direct subsequent loan funds for preservation transactions.
Makes Property Transfers More Marketable
By allowing subsequent MFH loan funds to be used for acquisition, potential buyers (transferees) of USDA-financed multifamily properties gain access to needed Agency financing during transfers. The rule is intended to reduce administrative barriers and make transfers more attractive to potential purchasers, supporting timely preservation transactions.
Supports Preservation of Affordable Rural Housing
The change aims to create a more efficient mechanism for preserving multifamily housing (MFH) by enabling acquisition financing in preservation transactions, which can reduce delays in transfers and support timely preservation efforts. The MFH program serves low-income households, elderly residents, domestic farm laborers, disabled individuals, and their families, so preserving these properties may help maintain affordable rental housing for those groups.
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Key Dates
Department and Agencies
Related Federal Register Documents
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The USDA’s Rural Housing Service wants to update its loan program so people can get loans to buy homes with one or more income-producing Accessory Dwelling Units (ADUs). This means homeowners can finance properties that include rental units or spaces for home-based work. If you’re interested, make sure to send your comments by June 1, 2026!
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2026-20022, Revised Fee Structure for Section 538 Guaranteed Rural Rental Housing Program Initial and Annual Guarantee Fees
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The USDA’s Rural Housing Service is launching a pilot to make it easier and faster to preserve affordable rural rental housing by changing rules for loan transfers and guarantees. This affects owners and residents of multifamily housing, especially those using Low Income Housing Tax Credits or guaranteed loans. The pilot starts now and aims to cut red tape, speed up transfers, and protect these homes for the long haul.
2026-16914, Rescission of Rural Development's Construction and Repair Regulation
The Rural Business-Cooperative Service (RBCS), Rural Housing Service (RHS), and Rural Utilities Service (RUS), together make up the Rural Development (RD or the Agency) mission area within the U.S. Department of Agriculture (USDA). RD is issuing this proposed rule to rescind its regulation regarding construction and repairs. RD found this regulation to be unnecessary and unduly burdensome. In addition, it makes changes to RBCS regulations by removing references to the construction and repair regulations. The plain language summary of the proposal is available on Regulations.gov in the docket for rulemaking.
2026-13397, Notice of Recission of Funding Opportunity for the Rural Community Development Initiative (RCDI) for Fiscal Year 2025
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