Rural Development Multi-Family Housing Rural Housing Voucher Demonstration Program

The Rural Housing Voucher Demonstration program is designed to provide rental housing assistance vouchers to tenants in properties that prepay their Rural Development mortgage.

The amount of this subsidy is the difference between the comparable market rent and the amount of rent being paid by
the tenant when prepayment occurs.

Prepaying properties may be located anywhere in the 50 states, Purerto Rico, the U.S.

Virgin Islands and Guam.

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

The monthly housing assistance payment for the Rural Development Voucher Program is the difference between the comparable market rent for the family"s former Section 515 unit and the tenant"s rent contributon on the date of the prepayment.

The rental unit must pass a Rural Development health and safety inspection.

The owner must be willing to accept a Rural Development voucher.

Use at HUD Section 8 or other Federally-assisted public housing, is prohibited.

The Rural Development voucher may not be used in combination with the Rural Development Rental Assistance program.

Eligibility Requirements

Applicant Eligibility

Applicants must (a) be residing in the Section 515 project on the date of the prepayment of the Section 515 loan or upon foreclosure by Rural Development; (b) the date of the prepayment or foreclosure must be after September 30, 2005; (c) as required by 42 U.S.C.

1436a the tenant must be a citizen, U.S.

non-citizen national or qualified alien and will so provide proof of citizenship.

Beneficiary Eligibility

Applicants must be citizens, U.S. non-citizen nationals or qualified aliens and have an adjusted household income at or below 80 percent of area median income as determined annually by the U.S. Department of Housing and Urban Development (HUD) to be eligible for a rural housing voucher.


The applicant must furnish factual evidence that their adjusted household"s income is at or below 80 percent of area median income as determined annually by HUD and furnish proof of citizenship to be eligible, or to continue to be eligible, for a rural housing voucher. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedures

During the prepayment or foreclosure process, Rural Development will evaluate every tenant family to determine if it is low-income. If Rural Development determines a family is low-income, immediately prior to the foreclosure or prepayment, Rural Development will send the primary tenant a letter offering the family a voucher.


Contact the headquarters or regional office, as appropriate, for application deadlines.


Omnibus Appropriations Act, 2009 (Public Law 111-8) for the Rural Development Voucher Program as authorized under Section 542 of the Housing Act of 1949, as amended, 42 U.S.C. 1471 et. seq. (without regard to Section 542(b)).

Range of Approval/Disapproval Time

Not Applicable.


Not Applicable.


The voucher is renewable, annually, subject to the availability of appropriations to the USDA.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.

Length and Time Phasing of Assistance

On an annual basis. See the following for information on how assistance is awarded/released: Assistance is awarded/released on a monthly basis.

Post Assistance Requirements


No reports are required.


No audits are required for this program.


No Data Available.

Financial Information

Account Identification



(Direct Payments for Specified Use) FY 09 $6,400,000; FY 10 est $16,000,000; FY 11 est $18,000,000

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices.

Headquarters Office

Director, Portfolio Management Division, USDA, Rural Development, 1400 Independence Avenue, S.W., Stop 0782, Washington, District of Columbia 20250-0782 Email: Phone: (202) 720-1615.

Criteria for Selecting Proposals

Not Applicable.

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