Multi-Family Housing Program Directors FROM

March 27, 2006
TO:
ATTENTION:
State Directors
Rural Development
Program Directors, Multi-Family Housing (MFH) Program Directors and
Coordinators
FROM: Russell T. Davis (Signed by Russell T. Davis)
Administrator
Housing and Community Facilities Programs
SUBJECT:
Preservation Proposals for Equity Funding
The purpose of this Unnumbered Letter (UL) is to announce the availability of up to $4.3 million of the
Section 515 reserve that is made available to fund innovative approaches to preserve rental housing. One
example of an innovative approach is providing an equity loan at the time of transfer to a Non-Profit (NP)
or public body in exchange for a restrictive-use agreement that assures that the project will remain as
affordable housing for its remaining useful life. This UL announces that proposals to use funds should be
submitted to the Office of Rental Housing Preservation (ORHP) by May 10, 2006.
States wishing to submit proposals for consideration for funding should submit the attached spreadsheet
that provides the following basic project information:
Project Name:
Borrower ID & Loan #:
Borrower Name:
Project Location:
State:
Project Type:
RRH/LH
# Units:
# RA Units:
# of Sec. 8 Units:
Expiration Date of Current
Restrictions:
Your spreadsheet should address the following:
• The anticipated equity loan amount.
• Can the transfer be completed prior to September 1, 2006?
• Is there a potential impact on minorities?
• Is the project needed in the community?
• Will the transfer be to a NP or Limited-Profit (LP) borrower entity?
EXPIRATION DATE:
December 31, 2006
FILING INSTRUCTIONS:
Housing Programs