NAHMA USDA Update: New Section 538 Guarantee Fees Structures Published in Federal Register

March 3, 2022

Dear NAHMA Members,

The Office of Multifamily Housing recently announced a new fee structure for the Section 538 Guaranteed Rural Rental Housing Program initial and annual guarantee fees (see attached). Applications meeting qualifications in one of the following three categories will receive further reduction in the Initial and Annual Guarantee fees:

1) Green and Energy Efficient,

2) Preservation of Existing Section 515, 514/516 Rural Development Properties, and

3) Workforce Housing.

Please note that the effective date for the new fees will be April 4, 2022. For more information, please view the announcement below.

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Multifamily Housing

Section 538 New Fee Structure For Initial and Annual Guarantee Fees

The Agency announced new Initial and Annual Guarantee fees for the Section 538 Guaranteed Rural Rental Housing Program, as published in the Federal Register notice, today, Federal Register :: New Fee Structure for Section 538 Guaranteed Rural Rental Housing Program Initial and Annual Guarantee Fees. The effective date for the new fees will be April 4, 2022. Applications eligible for the reduced fees are those without fully executed conditional commitments (not signed by both the Agency and Lender) as of the date the notice is published. Applications ineligible for the reduced fees are those with fully executed conditional commitments (signed by both the Agency and Lender) as of the date the notice is published, or loans obligated prior to October 1, 2021. The Agency is reducing Initial and Annual Guarantee fees across-the-board for eligible applications. Applications meeting qualifications in one of the following three categories will receive further reduction in the Initial and Annual Guarantee fees: (1) Green and Energy Efficient, (2) Preservation of Existing Section 515, 514/516 Rural Development Properties, and (3) Workforce Housing. In order to receive the additional fee reduction for any of these three categories, documentation must be submitted to the Agency along with the application package.

As a reminder, applicants will continue to submit a completed NOSA Response Form to the Agency. Please use the latest version of the NOSA Response Form after the new fee structures are implemented. The updated fillable NOSA Response Form containing information for the new fees will be available on the Rural Development Multifamily Housing Loan Guarantees | Rural Development website, on April 4, 2022. Click on the “To Apply” tab to access the updated form.

If you have questions, please contact Jonathan Bell, Director, Processing and Report Review Branches - Production and Preservation Division at [email protected] or Abby Boggs, Branch Chief, Program Support Branch - Production and Preservation Division at [email protected].

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