CARH’S BROADCAST E-MAIL – Regulatory Update

April 28, 2023

Today, Rural Development sent out the following information regarding the Office of Multifamily Housing handbook revisions:

The Rural Housing Service (RHS) recently posted revisions to the Multifamily Housing Handbooks.

Multifamily Housing Loan Origination Handbook.  Revisions were made to Chapters 1 and 5, as follows:

Chapter 1 of Handbook 1-3560, Multifamily Housing (MFH) Loan Origination, was updated to provide clarification regarding the term and period of performance for Off-Farm Labor Housing grants to comply with the federal award requirements outlined in 2 CFR 200.211.

The Agency also revised the Farm Labor Housing Grant Agreement, Form RD 3560-42, to comply with 2 CFR 200.211.

Chapter 5 of Handbook 1-3560, paragraphs 5.15 and 5.18 were updated to align with approval and obligation procedures of the current organizational structure of MFH.  References to “State Office employees” and “Loan Approval Official” were replaced with “MFH Production and Preservation Division staff” and “MFH Staff” respectively to reflect the realignment of the Office of Multifamily Housing.  The requirement for a signed copy of the Loan Agreement or Loan Resolution was removed from Section 5.15, as these documents are required at the loan closing stage, not the loan approval stage.

Multifamily Housing Guaranteed Rural Rental Housing Origination and Servicing Handbook. Revisions were made to Chapters 3 and 8 as follows:

Chapter 3 of Handbook 1-3565, Guaranteed Rural Rental Housing Program (GRRHP) Origination and Servicing Handbook, was updated to cite the correct website address for the income limits associated with the Section 538 GRRHP.  References to “State Office” were replaced with “Agency” to reflect the realignment of the Office of Multifamily Housing.  The requirement that the Agency is responsible for screening borrowers in the Do Not Pay (DNP) System was replaced with language requiring lenders to provide evidence they have properly screened borrowers in the DNP system. Exhibit 3-3 was updated to reflect the Multifamily Housing Production and Preservation Director’s title and mailing address.

Chapter 8 of Handbook 1-3565 was updated to cite the correct web address for the income limits associated with the Section 538 GRRHP.  References to “State Office” were replaced with “Agency” to reflect the realignment of the Office of Multifamily Housing. The “Finance Office” reference was replaced with “Agency” for the submission of Quarterly Reports.

Please contact Abby Boggs, Program Support Branch Chief, at abby.boggs@usda.gov with any questions or requests for clarification.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website, www.carh.org.