In an email message to congressional offices, The U.S. Department of Agriculture (USDA) explains that the department has rescinded a previous Section 515 NOFA that was to be used for new construction funding. The ruling in a recent Supreme Court case, Salazar v. Ramah Navajo Chapter, states that if agencies have outstanding contracts and sufficient appropriations, they must fund those contracts. Owners of over 100 Section 515 properties have been on a waiting list for incentives (equity loans and/or Rental Assistance) from USDA to keep these properties in the program, so RD has decided to use 515 appropriations to fund prepayment incentives. The limited funding left in the 515 program will be used to rehabilitate existing 515 housing, or facilitate the sale of RD inventory properties to owners adept at finding additional resources to revitalize the properties.
Click here to read the letter.
