RD Rental Assistance Obligation Tool

BROADCAST EMAIL—Regulatory Update

March 21, 2016

This afternoon, USDA Rural Development (RD), forwarded an Unnumbered Letter (UL) dated March 18, 2016, entitled Rental Assistance Obligation Tool.

As CARH members know, for many years RD used a state-wide averaging system for determining Rental Assistance (RA) usage for properties. Beginning October 1, the start of Fiscal Year (FY) 2016, the new RA Obligation Tool (Tool) was implemented. The Tool is intended to determine RA needs based in part on actual RA usage in properties. The Tool is also projected to create efficient and automated time-saving obligation process; speed funds to the borrower; and to use as near real-time data as possible so as to project the cost of a 12-month RA agreement. It will hopefully help prevent the RA shortages that occurred in FY 2015.

The just issued UL describes how the Obligation Tool works. RD accompanied the UL with a PowerPoint presentation that describes in more detail the calculation methodology that is used by the Tool. Click here for a PDF of that presentation.

RD will continue to monitor the Tool and is doing quality assurance tests on a regular basis. It is also important that CARH members let the national CARH office know if there are any issues with this RA Obligation Tool.

If you have any questions or concerns, please contact CARH at carh@carh.org or 703-837-9001 and we will work with RD to address them.

Comments are closed.