Rule2026-07064
Revisions to the Calculation of Annual Household Income and Net Family Assets in the Section 515 Rural Rental Housing and Section 514/516 Farm Labor Housing Programs
Primary source
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Published
April 13, 2026
Effective
April 13, 2026
Issuing agencies
Agriculture DepartmentRural Housing Service
Abstract
The Rural Housing Service (RHS or Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), amends its regulation to implement changes related to income calculation and net family assets for properties that receive funding from the Multi-Family Housing (MFH) Section 515 Rural Rental Housing and the Section 514/516 Farm Labor Housing Direct Loan and Grant programs. These changes are intended to align the Agency's annual income certification requirements with the Housing Opportunity Through Modernization Act of 2016 (HOTMA).
Full Text
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<title>Federal Register, Volume 91 Issue 70 (Monday, April 13, 2026)</title>
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[Federal Register Volume 91, Number 70 (Monday, April 13, 2026)]
[Rules and Regulations]
[Pages 18769-18772]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07064]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR 3560
[Docket No. RHS-24-MFH-0044]
RIN 0575-AD44
Revisions to the Calculation of Annual Household Income and Net
Family Assets in the Section 515 Rural Rental Housing and Section 514/
516 Farm Labor Housing Programs
AGENCY: Rural Housing Service, U.S. Department of Agriculture (USDA).
ACTION: Final rule.
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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development
(RD) agency of the United States Department of Agriculture (USDA),
amends its regulation to implement changes related to income
calculation and net family assets for properties that receive funding
from the Multi-Family Housing (MFH) Section 515 Rural Rental Housing
and the Section 514/516 Farm Labor Housing Direct Loan and Grant
programs. These changes are intended to align the Agency's annual
income certification requirements with the Housing Opportunity Through
Modernization Act of 2016 (HOTMA).
DATES: This rule is effective on April 13, 2026.
[[Page 18770]]
ADDRESSES: Information about Rural Development and its programs is
available on the internet at <a href="http://rd.usda.gov">rd.usda.gov</a>.
FOR FURTHER INFORMATION CONTACT: Julie Felhofer, Multi-Family Housing
Asset Management Division, Rural Housing Service, 1400 Independence
Avenue SW, Washington DC 20250-0782, Telephone: (715) 295-4069; Email:
<a href="/cdn-cgi/l/email-protection#771d021b1e125911121b1f18111205370204131659101801"><span class="__cf_email__" data-cfemail="d3b9a6bfbab6fdb5b6bfbbbcb5b6a193a6a0b7b2fdb4bca5">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Authority
Section 510(k) of Title V the Housing Act of 1949 (42 U.S.C.
1480(k)), as amended, authorizes the Secretary of the Department of
Agriculture to promulgate rules and regulations as deemed necessary to
carry out the purpose of that title. The MFH programs are implemented
under 7 CFR part 3560.
II. Background
RHS offers a variety of programs to build or improve housing and
essential community facilities in rural areas. RHS offers loans,
grants, and loan guarantees for Single- and Multi-Family housing,
childcare centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, housing
for farm laborers and much more. RHS also provides technical assistance
loans and grants in partnership with non-profit organizations, Indian
Tribes, State and Federal Government agencies, and local communities.
MFH assists rural property owners through loans, loan guarantees,
and grants that enable owners to develop and rehabilitate properties
for low-income, elderly, and disabled individuals and families as well
as domestic farm laborers.
On July 29, 2016, HOTMA (Pub. L. 114-201) was signed into law and
made numerous modifications to the Housing Act of 1937 (1937 Act)
affecting numerous federal rental assistance programs, which include RD
MFH rental assistance programs. RHS published their proposed rule on
June 30, 2025, in the Federal Register (90 FR 27817).
III. Discussion of the Final Rule and Public Comments
The Department of Housing and Urban Development (HUD) finalized its
implementation of HOTMA and published a final rule on February 14, 2023
(88 FR 9600), which included significant changes to how HUD calculates
annual income and net family assets. As a result, MFH is amending its
regulation at 7 CFR 3560 to align with HUD and in compliance with
HOTMA.
Under the RHS MFH program, tenants must annually certify their
household income. 7 CFR 3560.153(a) currently requires that annual
income be calculated in accordance with HUD's regulation at 24 CFR
5.609. MFH will continue to reference HUD's regulation in 7 CFR
3560.153(a) and will incorporate HUD's revised definition of ``annual
income'' found at 24 CFR 5.609(a) and (b). The Agency will add new
language to 7 CFR 3560.153 to clarify that ``net family assets'' will
be calculated in accordance with HUD's regulation at 24 CFR 5.603(b).
No comments regarding the specific changes in the proposed rule
were received by the Agency. The one comment received was in regard to
carbon dioxide and energy related utility costs. RHS is finalizing the
rulemaking as proposed.
IV. Summary of Changes
The Agency will make the following changes that are intended to
align the MFH Rental Assistance Programs with the income and asset
calculation updates, as required by HOTMA:
1. Update 7 CFR 3560.153 (a) stating that annual income will be
calculated in accordance with 24 CFR 5.609 (a) and (b).
2. Add a new paragraph at 7 CFR 3560.153(c) stating that net family
assets will be calculated in accordance with 24 CFR 5.603(b).
V. Executive Orders and Acts
Executive Order 12372, Intergovernmental Review of Federal Programs
These loans are subject to the provisions of Executive Order 12372,
which require intergovernmental consultation with state and local
officials. RHS conducts intergovernmental consultations for each loan
in accordance with 2 CFR part 415, subpart C.
Executive Order 12866, Regulatory Planning and Review
This final rule has been determined to be not significant and,
therefore, was not reviewed by the Office of Management and Budget
(OMB) under Executive Order 12866.
Executive Order 12988, Civil Justice Reform
This final rule has been reviewed under Executive Order 12988. In
accordance with this rulemaking: (1) Unless otherwise specifically
provided, all state and local laws that conflict with this rulemaking
will be preempted; (2) no retroactive effect will be given to this
rulemaking except as specifically prescribed in the rule; and (3)
administrative proceedings of the National Appeals Division of the
Department of Agriculture (7 CFR part 11) must be exhausted before
suing in court that challenges action taken under this rulemaking.
Executive Order 13132, Federalism
The policies contained in this final rule do not have any
substantial direct effect on States, on the relationship between the
National Government and the States, or on the distribution of power and
responsibilities among the various levels of government. This final
rule does not impose substantial direct compliance costs on State and
local governments; therefore, consultation with States is not required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This final rule has been reviewed in accordance with the
requirements of Executive Order 13175, ``Consultation and Coordination
with Indian Tribal Governments.'' Executive Order 13175 requires
Federal agencies to consult and coordinate with Tribes on a government-
to-government basis on policies that have Tribal implications,
including regulations, legislative comments or proposed legislation,
and other policy statements or actions that have substantial direct
effects on one or more Indian Tribes, on the relationship between the
Federal Government and Indian Tribes or on the distribution of power
and responsibilities between the Federal Government and Indian Tribes.
Consultation is also required for any regulation that preempts Tribal
law or that imposes substantial direct compliance costs on Indian
Tribal governments and that is not required by statute.
The Agency has determined that this final rule does not, to our
knowledge, have Tribal implications that require formal Tribal
consultation under Executive Order 13175. If a Tribe requests
consultation, the Agency will work with the Office of Tribal Relations
to ensure meaningful consultation is provided where changes, additions
and modifications identified herein are not expressly mandated by
Congress.
Assistance Listing
The programs affected by this regulation are listed in the
Assistance Listing Catalog (formerly Catalog of Federal Domestic
Assistance) under number 10.415-Rural Rental Housing Loans, 10.427-
Rural Rental Assistance Payments, 10.405-Farm Labor Housing Loans and
Grants.
[[Page 18771]]
Civil Rights Impact Analysis
RD has reviewed this final rule in accordance with USDA Regulation
4300-004, Civil Rights Impact Analysis, to identify any major civil
rights impacts the proposed rule might have on program participants on
the basis of age, race, color, national origin, sex, or disability.
After review and analysis of the final rule and available data, it has
been determined that implementation of the rulemaking will not
adversely or disproportionately impact low and moderate-income
populations, minority populations, women, Indian tribes or persons with
disability, by virtue of their age, race, color, national origin, sex,
disability, or marital or familial status. No major civil rights impact
is likely to result from this final rule.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this final
rule as not a major rule, as defined by 5 U.S.C. 804(2).
E-Government Act Compliance
RHS is committed to complying with the E-Government Act by
promoting the use of the internet and other information technologies to
provide increased opportunities for citizen access to government
information, services, and other purposes.
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969,
Public Law 91-190, this final rule has been reviewed in accordance with
7 CFR part 1b (``National Environmental Policy Act''). The Agency has
determined that (i) this action meets the criteria established in 7
CFR1b and (ii) no extraordinary circumstances exist. Therefore, the
Agency has determined that the action does not have a significant
effect on the human environment, and therefore neither an Environmental
Assessment nor an Environmental Impact Statement is required.
Paperwork Reduction Act
The information collection requirements contained in this
regulation have been approved by OMB and have been assigned OMB control
number 0575-0189. This final rule contains no new reporting and
recordkeeping requirements that would require approval under the
Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35).
Regulatory Flexibility Act
This final rule has been reviewed with regard to the requirements
of the Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned
has determined and certified by signature on this document that this
final rule will not have a significant economic impact on a substantial
number of small entities since this rulemaking action does not involve
a new or expanded program nor does it require any more action on the
part of a small business than required of a large entity.
Unfunded Mandates Reform Act (UMRA)
Title II of the UMRA, Public Law 104-4, establishes requirements
for Federal agencies to assess the effects of their regulatory actions
on State, local, and Tribal governments and on the private sector.
Under section 202 of the UMRA, Federal agencies generally must prepare
a written statement, including cost-benefit analysis, for proposed and
final rules with ``Federal mandates'' that may result in expenditures
to State, local, or Tribal governments, in the aggregate, or to the
private sector, of $100 million or more in any one year. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires a Federal agency to identify and consider a reasonable number
of regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This final rule contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for State, local, and Tribal
governments or for the private sector. Therefore, this final rule is
not subject to the requirements of sections 202 and 205 of the UMRA.
Nondiscrimination Statement
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, disability, age, marital
status, family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the State or
local Agency that administers the program or contact USDA through the
Telecommunications Relay Service at 711 (voice and TTY). Additionally,
program information may be made available in languages other than
English.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at <a href="https://www.usda.gov/sites/default/files/documents/ad-3027.pdf">https://www.usda.gov/sites/default/files/documents/ad-3027.pdf</a> and at any USDA office or write a letter
addressed to USDA and provide in the letter all of the information
requested in the form. To request a copy of the complaint form, call
(866) 632-9992. Submit your completed form or letter to USDA by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Mail Stop
9410, Washington, DC 20250-9410; or
(2) Fax: (202) 690-7442; or
(3) Email: <a href="/cdn-cgi/l/email-protection#2e5e5c41495c4f430047405a4f454b6e5b5d4a4f00494158"><span class="__cf_email__" data-cfemail="e090928f8792818dce898e94818b85a095938481ce878f96">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Severability
It is USDA's intention that the provisions of this final rule shall
operate independently of each other. In the event that this final rule
or any portion of this rule is ultimately declared invalid or stayed as
to a particular provision, it is USDA's intent that this final rule
nonetheless be severable and remain valid with respect to those
provisions not affected by a declaration of invalidity or stayed. USDA
concludes it would separately adopt all of the provisions contained in
this final rule.
List of Subjects in 7 CFR 3560
Accounting, Administrative practice and procedure, Aged, Conflicts
of interest, Government property management, Grant programs-housing and
community development, Insurance, Loan programs-agriculture, Loan
programs-housing and community development, Low and moderate-income
housing, Migrant labor, Mortgages, Nonprofit organizations, Public
housing, Rent-subsidies, Reporting and recordkeeping requirements,
Rural areas.
For the reasons set forth in the preamble, Rural Housing Service
amends 7 CFR part 3560 as follows:
[[Page 18772]]
PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS
0
1. The authority citation for part 3560 continues to read as follows:
Authority: 42 U.S.C. 1480.
0
2. Amend Sec. 3560.153 by revising paragraph (a) and adding a new
paragraph (c) to read as follows:
Sec. 3560.153 Calculation of household income and assets.
(a) Annual income will be calculated in accordance with 24 CFR
5.609(a) and (b).
* * * * *
(c) Net family assets will be calculated in accordance with 24 CFR
5.603(b).
George Kelly,
Administrator, Rural Housing Service.
[FR Doc. 2026-07064 Filed 4-10-26; 8:45 am]
BILLING CODE 3410-XV-P
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