🏡Impact of New Market Study Requirement on Rural Housing Loans
Multifamily Housing Guaranteed Rural Rental Housing Program Requirement To Submit a Market Study
Summary
The Rural Housing Service (RHS or Agency), an agency of the Rural Development (RD), within the United States Department of Agriculture (USDA), is issuing a proposed rule to amend its regulation that will require applicants (lenders) to submit a market study as part of the complete application for the Guaranteed Rural Rental Housing Program (GRRHP) loan guarantee. This change will require all applicants to use a market study when demonstrating market need for new construction.
Agencies
- Agriculture Department
- Rural Housing Service
Business Impact
$$$ - High
The regulation requires lenders to submit a market study as part of their loan guarantee application for the Guaranteed Rural Rental Housing Program, directly affecting compliance and operational requirements for business owners in the lending industry. This could lead to increased costs and longer application processing times if businesses do not have a market study prepared.