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USDA/RHS RIN: 0575-AD50 Publication ID: Spring 2025 
Title: ●Subsequent Loan Use to include acquisition as an eligible form of assistance 
Abstract:

Between now and 2050, the Rural Housing Service (RHS) risks losing 330,000 affordable units to the maturing mortgage and Section 521 Rental Assistance termination risk. Pursuant to 7 CFR 3560.73(a)(Subsequent loans; applicability), the Agency may make a subsequent loan to a borrower to complete, improve, repair, or make modifications to MFH projects initially financed by the Agency or for equity preservation purposes.  The regulation does not explicitly prohibit acquisition as an eligible use; however, it does not specify acquisition is an eligible use. Similar assistance is available if and only if an owner requests prepayment as described in 7 CFR 3560.652 (Prepayment and restrictive-use categories); however, that process is lengthy, burdensome to the borrower and the Agency, and rife with legal vulnerabilities.  The inclusion of acquisition as an eligible use in section 3560.73 would free up credit in preservation transactions without requiring the owner and the Agency to navigate a time-consuming and burdensome threat to prepay the Agency loan with the added risk of an owner exiting the portfolio.  

 

 
Agency: Department of Agriculture(USDA)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
EO 14192 Designation: Not subject to, not significant 
CFR Citation: 7 CFR 3560   
Legal Authority: 42 U.S.C. 1484-86    42 U.S.C. 1480(k)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Proposed Rule  02/00/2026 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Daniel Rogers
Director of Processing and Preservation
Department of Agriculture
Rural Housing Service
1400 Independence Avenue SW,
Washington, DC 20250
Phone:202 400-0127
Email: daniel.rogers2@usda.gov