Definition
The Rural Rental Housing Program, also called the Section 515 program, provides low-interest loans to finance affordable multifamily housing or congregate housing for families and people who are elderly or disabled who are low-income. Section 515 loans can be used to purchase, construct, or rehabilitate housing. Loans are available for up to 30 years with only a one percent interest rate, which helps keep the rents affordable.
Funds are awarded competitively by the USDA Office of Rural Development to interested housing developers including individuals; partnerships; state and local agencies; and for-profit and non-profit organizations.