NAHMA USDA Update: Guaranteed Rural Rental Housing Change in Initial Guarantee Fee and Annual Guarantee FeeDecember 18, 2020 Dear NAHMA Members, USDA’s Office of Rural Development recently published a Final Rule, Guaranteed Rural Rental Housing Change in Initial Guarantee Fee and Annual Guarantee Fee. This rule removes the specific amount of the Section 538 Guaranteed Rural Rental Housing Program Annual Guarantee fee, and adds language that USDA will charge an Initial Guarantee Fee up to one percent of the guarantee amount. By statute, the Initial Guarantee fee is capped at one percent of the guarantee amount. The Rule will give USDA the flexibility to make changes to fees without the administrative burden of issuing regulatory changes. This rule does not change the existing Section 538 fee structure at this time. When USDA does make a change to the fee structure, a notice will be published after consideration of stakeholder input and feedback on the proposed changes. The Guaranteed Rural Rental Housing Change in Initial Guarantee Fee and Annual Guarantee Fee Final Rule is attached and available here. |