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Direct Multifamily Housing Subsequent Loans for Acquisition
Plain English Summary
The Rural Housing Service (RHS) is changing its rules to allow owners of multifamily housing to use government loans to help buy properties. This means that if a property was originally financed by the RHS, the owner can now apply for funds to assist with purchasing it again. This change aims to make the process easier for both property owners and the RHS. Agents should inform their clients about this new funding option for multifamily housing acquisitions.
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The Rural Housing Service (RHS or the Agency), a Rural Development agency of the United States Department of Agriculture (USDA), proposes to amend the current regulation for the Direct Multifamily Housing (MFH) Loan and Grant Programs. The intent of this proposed rule is to include acquisition as an applicable form of assistance for direct MFH subsequent loans. This regulatory change would allow owners of MFH initially financed by the Agency to apply for Agency funds to help finance acquisition in preservation transactions, thereby reducing administrative and regulatory burden for both industry partners and the Agency.