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Direct Housing-Natural Disaster Loans And Grants

Program Descriptions

Program Number



Direct Housing-Natural Disaster Loans And Grants


Federal Agency




Housing Act of 1949, Title V, Section 504, as amended, Public Laws 89-117, 89-754, and 92-310, 42 U.S.C. 1474; Public Law 104-134.






To assist qualified recipients to meet emergency assistance needs resulting from natural disaster. Funds are only available to the extent that funds are not provided by the Federal Emergency Management Agency (FEMA). For the purpose of administering these funds, natural disaster will only include those counties identified by a Presidential declaration.


Types of Assistance

Direct Loans; Project Grants.


Uses and Use Restrictions

To assist very-low income owner- occupants to repair or replace damaged property as a direct result of a natural disaster. Loans are made in counties named by the Federal Management Agency as being eligible for Federal assistance under an emergency declaration by the President.


Eligibility Requirements

Applicant Eligibility

Applicants must own and occupy the home in a rural area. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. The applicant's income for a loan may not exceed the very lowincome limit which can be obtained in any Rural Development (RD) field office.

Beneficiary Eligibility

Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria.


Natural disasters will only include those areas identified by a Presidential declaration. Funds are only available to the extent that funds are not provided by the Federal Emergency Management Agency (FEMA). Applicants must establish that physical damage was caused by natural disaster. For Section 504 loans/grants, there must be evidence of ownership and verification of income and debts. For grant recipients, evidence of age is required. The applicant must be unable to get credit elsewhere and demonstrate repayment for the loan.


Application and Award Process

Preapplication Coordination

This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.

Application Procedure

Applicants must file Form RD 410-4 at the Rural Development field office serving the county where the dwelling is located. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure

Final approval of the application is given by the local or area office loan approval official.


Applicants must file applications from the date of declaration/designation and until supplemental appropriated funds are exhausted.

Range of Approval/Disapproval Time

From 30 to 60 days subject to the availability of funds, from the time the application is filed if no backlog of applications exist.


Applicants may request reconsideration at the local RD field office and may appeal adverse actions in accordance with 7 CFR Part 11. Appeals may be filed within 30 days after notification of the adverse decision is received by the loan/grant applicants.



Assistance Considerations

Formula and Matching Requirements

This program has no matching requirement or statutory formula.

Length and Time Phasing of Assistance

These funds are available only if the Supplemental Emergency Funding for Natural Disaster has been appropriated.


Post Assistance Requirements






Borrowers are not required to, but should retain copies of loan/grant related documents.


Financial Information

Account Identification

(Loans) 12-2081-0-1-371; 12-4215-0-3-371. (Grants) 12-1953-0-1-999.


(Loans) FY 07 $40,000; FY 08 est. not available; and FY 09 est. not available.

Range and Average of Financial Assistance

(Grants) FY 07 $21,300; FY 08 est. $0; and FY 09 est. $0. (Loans) $6,167; (Grants) $5,241.


Program Accomplishments

In fiscal year 2005, the number of existing houses improved through Section 504 Natural Disaster Loans and Grants was 1,322.


Regulations, Guidelines and Literature

7 CFR 3550.


Information Contacts

Regional or Local Office

Consult your local telephone directory under United States Department of Agriculture for Rural Development field office number. If no listing, contact appropriate RD State Office listed in Appendix IV of the Catalog or on the internet at

Headquarters Office

Director, Single Family Processing Division, Rural Housing Programs (RHP), Department of Agriculture, Washington DC 20250. Telephone: (202) 720-1474. Use the same number for FTS

Web Site Address


Related Programs

10.410, Very Low To Moderate Income Housing Loans


Examples of Funded Projects

Not applicable.


Criteria for Selecting Proposals

Not applicable.


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