Summary
A U.S. Department of Agriculture (USDA) program called Section 515, which has provided affordable rental housing in rural areas since 1963, is being phased out. The program gave low-interest loans to developers to build affordable housing, but no new loans have been issued since 2011, and existing loans are set to mature by 2050. This could impact the affordability of housing for low-income residents in rural communities.
Key Facts
- The USDA's Section 515 program started in 1963 to support affordable housing in rural areas.
- This program has helped build over 533,000 affordable rental homes.
- Section 515 provides loans at below-market rates to developers who keep rents low for tenants.
- Tenants typically pay about $325 per month, much less than the usual market rent of $800-$1,100.
- The USDA stopped issuing new loans for this program in 2011.
- Current loans will mature by 2050, ending the program.
- About 750,000 people live in Section 515 housing, with an average annual income of $16,000.
- Over 60% of residents are over 62 years old or have disabilities.
