Section 515 is a specific provision within the Housing Act of 1949, a federal law in the United States. It establishes the Rural Rental Housing Program, which aims to provide affordable rental housing options for low-income individuals and families in rural areas.
Under Section 515, the U.S. Department of Agriculture (USDA) offers subsidized loans to eligible entities, including nonprofit organizations, private companies, and public agencies. These loans are used to finance the construction, acquisition, or rehabilitation of multi-family rental properties in rural communities with populations of 35,000 or less.
The main objective of the program is to increase the availability of safe and decent rental housing for individuals and families with very low to moderate incomes. The properties developed or rehabilitated under Section 515 must maintain their affordability for at least 30 years and are subject to income restrictions to ensure they serve the target population.
The rental rates in these properties are set at an affordable level, typically requiring eligible tenants to pay no more than 30% of their income for housing costs. By providing financial assistance and incentives to develop and maintain affordable rental housing, Section 515 has been instrumental in addressing the housing needs of rural communities and improving the living conditions of low-income residents in these areas.