Notice of Proposed Rule – Elimination of Section 538 NOFAs

CARH’S BROADCAST E-MAIL – Regulatory Update

December 18, 2018

USDA’s Rural Housing Service (RHS) is moving forward with the long-awaited, much discussed, removal of the Notice of Funding Availability (NOFA) requirement from the Section 538 program. CARH has long advocated for this change and we appreciate RHS working with stakeholders to achieve this important and useful administrative efficiency. The Federal Register, published the following Notice of Proposed Rule on December 17th:

  • Section 538 Guaranteed Rural Rental Housing Program Notice of Funding Availability Elimination
    RHS is amending its regulation to eliminate the requirement for the annual publication of NOFA. Additionally, RHS will remove all references to the term NOFA in other various sections. The intended effect of this action is to allow RHS to accept and start processing applications in a more fluid manner. Click here to review the proposed rule.

According to the Notice, while the Housing Act requires a publication of the availability of funds, application procedures, and selection criteria in the Federal Register, it does not contain the annual notification requirement. Therefore, RHS is amending its regulation to align with the Housing Act requirements, which will allow RHS to continue its application process under circumstances such as a Continuing Resolution. Comments on the proposed rule are due to RD on or before February 15, 2019.

This proposed rule, rule along with other issues, will be discussed during the “Transforming the Section 538 Program” session during CARH’s 2019 Midyear Meeting in Key Largo, Florida, January 28-30, 2019. Click here for more information on the session, the meeting, and on how to register.

Please contact the CARH national office at or 703-837-9001 should you have questions or concerns.


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