Section 515 properties — and the people who call them home — are at risk.
Nationwide, hundreds of thousands of seniors, people with disabilities, and low-income individuals and families live in United States Department of Agriculture (USDA) Section 515 rental properties, a crucial source of affordable housing in rural communities. However, these vital homes are at risk.
That’s why, with a grant from the USDA Rural Housing Service, MHP is providing technical assistance to help Public Housing Authorities and nonprofits in 12 Midwest states (listed below) acquire Section 515 properties with Rural Development (RD) mortgages maturing between 2018 and 2030 — and ensure these properties can stay affordable.
Interested in acquiring a 515 property? MHP can help!
If you’re a nonprofit or Public Housing Authority serving one of the states listed below and looking to purchase a 515 property, MHP’s experienced technical assistance staff can ensure you successfully navigate every step of the USDA transaction, from reaching out to the current owner to property inspection and more. Eligible requesters will be prioritized on a first come, first served basis.
MHP is providing technical assistance to entities in these states:
- North Dakota
- South Dakota
Contact Deputy Community Development Director Sarah Bellefuil to learn more.
Right: Map of USDA 515 properties from the USDA Property Preservation Tool.
As USDA Rural Development loans for these properties expire, more and more buildings are exiting the Section 515 program. Exiting properties may lose rental assistance funding, and some properties are no longer required to keep rents affordable — meaning tenants could face eviction or homelessness.
In Minnesota, Iowa and North Dakota, there are 334 Section 515 projects with RD loans maturing on or before December 31, 2030, according to data from the USDA MFH Property Preservation Tool. Minnesota and Iowa contain more projects estimated to exit by 2030 than any other states nationwide.
We simply can’t afford to lose these homes.
Learn more about Section 515
Read a 2018 report from the Housing Assistance Council to learn more about Section 515 properties, including strategies to keep them affordable. According to the report, approximately 13,000 USDA Section 515 rental properties provide more than 415,000 affordable homes nationwide. Seniors or people with special needs comprise 62 percent of the total number of people living in Section 515 properties. Residents’ annual income averages only $13,600.
Check out a map summarizing the locations of Section 515 properties.