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Single Family Housing Guaranteed Loan Program-Income Producing Accessory Dwelling Unit (ADU) Provisions
Plain English Summary
The Rural Housing Service (RHS) is changing rules for the Single Family Housing Guaranteed Loan Program. These changes will allow borrowers to finance homes that include one or more income-producing Accessory Dwelling Units (ADUs). The updates also clarify that homes can have features for running a business from home without being considered commercial properties. Insurance agents should stay informed about these changes as they may affect loan eligibility and property financing options for clients.
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The Rural Housing Service (RHS or the Agency), an agency of the Rural Development mission area within the United States Department of Agriculture (USDA), is issuing a proposed rule to amend the current Single Family Housing Guaranteed Loan Program (SFHGLP) regulation. These proposed changes are intended to allow the Agency to finance a single family home with a single or multiple income producing Accessory Dwelling Units (ADU). Additionally, we propose to clarify that borrowers can finance properties with features designed to accommodate home-based operations with non-commercial real estate features. The plain language summary of the proposal is available on Regulations.gov in the docket for rulemaking.