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USDA/RHS RIN: 0575-AD40 Publication ID: Fall 2023 
Title: ●7 CFR Part 3560--Revise Definition of Nonprofit Organizations for Direct Multi-Family Housing Loan and Grant Programs  

The Rural Housing Service (RHS), an USDA Rural Development mission area agency, is proposing to amend 7 CFR 3560 with the intent to update the definition of Non-Profit to include a limited partnership with a non-profit general partner to be considered a nonprofit organization for the RHS Multi-Family Housing (MFH) section 515 program. This is intended to provide consistency with the MFH section 514/516 program.

The Agency is actively pursuing a range of strategies to preserve the MFH portfolio, which has more than 400,000 units nationwide with an average property age around 35 years. More than 60 percent of all MFH properties will reach loan maturity by 2040, resulting in a significant loss of affordable housing in rural communities unless action is taken to facilitate preservation by new and current MFH owners. Expanding the definition of a nonprofit organization is intended to allow more entities to access Agency resources and incentives designated for nonprofits while maintaining the integrity of the nonprofit requirement. By expanding the nonprofit definition to include that entity structure (which is already an option available under section 514/516), the Agency can support organizations seeking third-party funding and reduce some complexities in the sale to nonprofit and transfer processes. For nonprofit organizations seeking to acquire and preserve properties without LIHTC, the option for a nonprofit corporation or limited liability corporation can allow them to limit risk to the nonprofit entity that occurs when the nonprofit directly owns properties.

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: No  Unfunded Mandates: No 
CFR Citation: 7 CFR 3560   
Legal Authority: 42 U.S.C 1480   
Legal Deadline:  None
Action Date FR Cite
Proposed Rule  06/00/2024 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Abby Boggs
Program Support Branch Chief, MFH
Department of Agriculture
Rural Housing Service
1400 independence Avenue SW,
Washington, DC 20250
Phone:615 480-1371