RHS Relaxes Refinancing Rules for ARRA-Funded Section 502 Loans

摘要

The Rural Housing Service (RHS) has relaxed some of the refinancing restrictions for Section 502 direct home loans for refinancing transactions funded under the American Recovery and Reinvestment Act (ARRA).rnARRA provided about $967 million in Section 502 direct loan funds, and the agency provided guidance on the use of the funds in an April 10 unnumbered letter to state Rural Development directors. Because of the broad applicability of Davis-Bacon prevailing wage requirements to projects receiving ARRA funding, the letter says that until agency-wide guidance is available, any 502 loan involving a construction contract in excess of $2,000 should be funded from annual appropriations, rather than from ARRA.