CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XXXV—RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE (parts 3550 to 3575) > PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS > SUBPART F—Rental Subsidies (§3560.251 to §3560.300) > 3560.252—Authorized rental subsidies.

3560.252—Authorized rental subsidies.

(a) General. The purpose of rental subsidies is to reduce amounts paid by tenants for rent. Rental subsidies equal the difference between the approved shelter costs and tenant contributions as calculated in accordance with § 3560.203(a)(1).
(b) Forms of rental subsidies. Rental subsidies may be in the form of:
(1) Agency rental assistance;
(2) HUD section 8 assistance, including project-based and vouchers;
(3) Private rental subsidies; or
(4) State or local government rental subsidies.
(c) Multiple rent subsidies. (1) Multiple types of rent subsidies may be used in the same MFH project.
(2) Tenants with subsidies from sources other than the Agency may be eligible for Agency rental assistance if the following conditions are met.
(i) The tenant qualifies for Agency rental assistance.
(ii) The rental subsidy the tenant is receiving is not a HUD voucher.
(iii) The rental subsidy being received by the tenant is less than the full amount of Agency rental assistance for which the tenant would qualify. In such cases, the Agency may provide the difference between the subsidy received by the tenant and the amount of Agency rental assistance for which the tenant qualifies.
(d) Agency rental assistance (RA). Agency RA is obligated to MFH projects on a rental unit basis. The obligation is composed of a number of rental units and associated dollar amounts of RA specified in a RA agreement with a borrower. The following types of Agency RA may be obligated to a housing project.
(1) Renewal units. RA may be assigned to a housing project to replace existing rental unit obligations because funds associated with the units have been fully disbursed.
(2) New construction units. RA may be provided in conjunction with initial Agency loans for construction or substantial rehabilitation of MFH projects.
(3) Servicing units. Additional RA may be provided to operational MFH projects as a part of the Agency's general loan servicing or preservation activities.