December 12, 2017: Protecting RD Residents and Preserving RD Rental Housing – Prepayments, Use Restrictions, RD Vouchers, and Loan Maturities
Residents of Rural Development (RD) rental housing are not adequately protected when an owner prepays the RD loan or when that loan matures. They are displaced and the affordability of the development where they live is not preserved. There are legal protections that limit resident displacement and preserve RD developments. However, these protections are not enforced properly and nearly 5,000 households are adversely affected each year by prepayments and loan maturities when the developments lose Interest Credit and Rental Assistance subsidies that support low-income residents. Thousands more will be affected over the next few years because of increasing loan maturities. Advocates and nonprofit or public agencies are typically not aware that a RD rental development in their service area is being prepaid, that the prepayment was or will be subject to use restrictions, that residents may be eligible for RD Vouchers, or that the development is reaching loan maturity. Nor are they aware of how they may be able to protect the residents against displacement both before and after prepayment and potentially preserve the development. This webinar will discuss – how you can find out whether a development in your area is or was prepaid and whether the prepayment was or will be subject to use restriction; – how to enforce use restrictions and secure RD vouchers to protect residents against displacement; – tenant protections and preservation alternatives when a loan is maturing; and – ways in which RD prepayment, use restriction, and voucher regulations do not conform to their authorizing statutes and fail to preserve developments or prevent resident displacement.