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The Rural Development (RD) Multi-Family Housing Revitalization Demonstration Program (MPR)

Program Descriptions

Program Number



The Rural Development (RD) Multi-Family Housing Revitalization Demonstration Program (MPR)


Federal Agency




Housing Act of 1949, as amended, Sections 514/516 and 515, and The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2008 (Public Law 110-161)






To preserve and revitalize existing rural rental housing and farm labor housing projects financed by RHS under Section 515 and Sections 514/516 of the Housing Act of 1949 and to ensure that sufficient resources are available in order to continue to provide safe and affordable housing for low-income residents.


Types of Assistance

Project Grants.


Uses and Use Restrictions

Funds will be used to meet the physical needs of rental and farm labor housing properties financed under Section 515 and Sections 514/516 of the Housing Act of 1949. Related soft costs are also eligible. Owners or buyers are required to agree to a Restrictive Use Covenant for 20 years or the remaining term of any loans, or the remaining term of any existing restrictive-use provisions whichever ends later. This ensures the property will be used for low income housing as defined by the Housing Act of 1949.


Eligibility Requirements

Applicant Eligibility

Owners or buyers of financially viable Section 515 financed rental or Section 514/516 labor housing properties.

Beneficiary Eligibility

Low-income rural residents needing safe, decent and sanitary rental housing.


Applicants must provide a Capital Needs Assessment (CNA) to identify the physical needs of the property as well as the estimated cost to make the needed repairs over a 20-year period.


Application and Award Process

Preapplication Coordination

Multi-Family Housing Revitalization Demonstration Program (MPR) Preapplication. An electronic version of this form can be found on the internet at or obtained by contacting the RD State Office in the state where the project is located. This program is excluded from coverage under E.O.12372.

Application Procedure

For FY 08, the MPR Program will be awarded through a Notice of Funding Availability announced in the Federal Register on March 12, 2008. The NOFA pre-application period is 60 days from the date of the announcement. The NOFA deadline is May 12, 2008.

Award Procedure

Pre-applications will be scored on the following factors: (1) Contribution of third party funds; (2) Owner contribution sufficient to pay transaction costs; (3) Age of Project; (4) Transfer and revitalization of troubled projects; (5) Prior Agency approvals of CNAs; (6) Installation of energy generation systems; (7) Energy conservation; and (8) New tenant services to be provided by a non-profit organization at no cost to the project and that are available to all tenants.


May 12, 2008.

Range of Approval/Disapproval Time

Within 45 days from Pre-application submission, pre-applications will be scored and ranked, eligibility will be confirmed, and applicants will be notified of selection for participation and requested to submit full applications.


Applicant may request reconsideration on the basis of pertinent facts concerning the application.



Assistance Considerations

Formula and Matching Requirements

This program is now a Notice of Funding Availability (NOFA). This is a demonstration program.

Length and Time Phasing of Assistance

Debt deferral is the lesser of the remaining term of the existing loan or 20 years. A balloon payment of accrued principal and interest will be due at the end of the deferral period. A revitalization grant for non-profit applicants/borrowers only, is limited to the cost of correcting health and safety violations as identified by a CNA. A revitalization zero percent loan will be amortized over 30 years. A soft-second loan with a one percent interest rate will have its interest and principal deferred, to a balloon payment, due at the time the latest maturing Section 514 or 515 loan becomes due. An additional 30-year Section 515 loan at an effective one percent interest rate amortized over a period not to exceed 50 years. An additional 33-year Section 514 loan at an effective one percent interest rate amortized over a period not to exceed 33 years. An additional Section 516 grant not to exceed the lesser of 90 percent of the total development cost, or that portion of the total development cost which exceeds the sum of any amount provided by the applicant from their own resources plus the amount of any Section 514 loans approved for the applicant.


Post Assistance Requirements


Quarterly or annual financial reports.


Quarterly or annual financial statements completed using agreed-upon procedures and performance standards described in the RHS Multi-Family Housing Audit Program.


Business records must be retained.


Financial Information

Account Identification



FY 07 $0; FY 08 $20,000,000; and FY 09 est not reported.

Range and Average of Financial Assistance

The underwriting guidelines include, but are not limited to, the following: The maximum soft-second loan will be limited to no more than $5,000 per unit; revitalization grants limited to $5,000 per unit; total assistance provided from a revitalization grant, revitalization zero percent loan, and/or a soft-second loan is limited to $10,000 per unit; and the maximum Section 515 loan or Section 514/516 loan and grant is limited to no more than $20,000 per unit.


Program Accomplishments

In Fiscal Year 2007, 87 properties received assistance for revitalization and preservation.


Regulations, Guidelines and Literature



Information Contacts

Regional or Local Office

Refer to the NOFA which lists contacts at the National Office and consult your local telephone directory for Rural Development District or State Office number. Also, contact information is available on the internet at

Headquarters Office

Office of Rental Housing Preservation, Attention: Sandra L. Mercier, Rural Development, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1617.

Web Site Address


Related Programs

10.415, Rural Rental Housing Loans


Examples of Funded Projects



Criteria for Selecting Proposals

Proposals will be selected based on eligibility and ranking and scoring criteria listed in the NOFA.


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