Multifamily Partnership Meeting April 11, 2024, 3-4 pm EST; Proposed Rule: Program Updates to the Credit Report Process for Section 515

Multifamily Partnership Meeting April 11, 2024, 3-4 pm EST; Proposed Rule: Program Updates to the Credit Report Process for Section 515

Please join us at the USDA Rural Development Multifamily Housing (MFH) Partnership Meeting webinar, which will be held via Zoom on April 11, 2024, 3:00 – 4:00 PM Eastern Time (US and Canada). During the webinar participants will hear from Multifamily Housing Deputy Administrator, Angilla Denton, in addition to Multifamily Housing Division Leadership.

The webinar will provide updates on Decoupling Authority, Funding Notices, The Blueprint for a Renters’ Bill of Rights, MFH Physical Inspection Program (MPIP), Housing Opportunity through Modernization Act (HOTMA), Fiscal Year 2025 Management Fees and other topics provided by stakeholders.

Register for the event at https://www.zoomgov.com/webinar/register/WN_T9iWp3AeRlq06BvqVlQKZw.

If there are topics you would like discussed during this or future webinars, please submit suggestions through the registration process.

Proposed Rule: Program Updates to the Credit Report Process for Multifamily Section 515 Rural Rental Housing Loans, Section 514 Farm Labor Housing Loans, and Section 516 Farm Labor Housing Grants

The Rural Housing Service (RHS) Office of Multifamily Housing (MFH) published a Proposed Rule on Friday, March 29, 2024 (Proposed Rule) to amend the current regulation for the following Multifamily Housing Direct Loan and Grant Programs: Section 515, Section 514 (Farm Labor Housing Loans), and Section 516 (Farm Labor Housing Grants).

This Proposed Rule will add clarifying language to 7 CFR 3560, updating the process for obtaining and submitting the credit reports required during the application process, which are used to determine credit worthiness and eligibility for Multifamily Housing programs.

The regulatory update will require applicants to submit a credit report as part of their application, eliminating the processing delay and contractual services required under the current process, by which the Agency is responsible for ordering credit reports for its borrowers after application receipt.

This regulatory update aligns the Agency with current industry practices and enhances efficiency for applicants and borrowers by modernizing and streamlining the application process.

Comments on the Proposed Rule may be submitted to the Agency via the Federal eRulemaking Portal as outlined in the Federal Register Proposed Rule. The comment period for the proposed rule will end on Tuesday, May 28, 2024.

The Agency proposes to revise 7 CFR 3560 by:

  1. updating 7 CFR 56(d)(5) to include the requirements of a valid credit report which must address both the entity and the actual individual principals, partners, members, etc., within the applicant entity, including any sub-entities who are responsible for controlling the ownership and operations of the entity.
  2. updating 7 CFR 3560.405 to include the requirement for a credit report in cases of change to the borrower’s organization structure or entity’s controlling interest.
  3. updating 7 CFR 3560.406 to include the requirement for a credit report for approval of transfers and sales.
  4. establishing a new Subpart R to provide detailed requirements of the credit report process.

In addition, this proposed rule intends to include conforming changes to rescind 7 CFR 1910, subparts B and C, which are outdated.

Questions or requests for clarification may be directed to the MFH Program Support Branch at .

To submit or view public comments, please visit the Federal eRulemaking Portal at http://www.regulations.gov