Notice2026-20022
Revised Fee Structure for Section 538 Guaranteed Rural Rental Housing Program Initial and Annual Guarantee Fees
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 30, 2026
Effective
September 30, 2026
Issuing agencies
Agriculture DepartmentRural Housing Service
Abstract
The Rural Housing Service (RHS or the Agency), a Rural Development agency of the United States Department of Agriculture (USDA), is announcing a revision to the current fee structure for the Section 538 Guaranteed Rural Rental Housing Program (GRRHP) initial and annual guarantee fees.
Full Text
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<title>Federal Register, Volume 91 Issue 188 (Wednesday, September 30, 2026)</title>
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[Federal Register Volume 91, Number 188 (Wednesday, September 30, 2026)]
[Notices]
[Pages 61820-61821]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20022]
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Notices
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or proposed rules that are applicable to the public. Notices of hearings
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Federal Register / Vol. 91, No. 188 / Wednesday, September 30, 2026 /
Notices
[[Page 61820]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
[Docket No. RHS-26-MFH-0166]
Revised Fee Structure for Section 538 Guaranteed Rural Rental
Housing Program Initial and Annual Guarantee Fees
AGENCY: Rural Housing Service, USDA.
ACTION: Notice; revision.
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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), is announcing a revision to the current fee structure for the
Section 538 Guaranteed Rural Rental Housing Program (GRRHP) initial and
annual guarantee fees.
DATES: The effective date of the revised fees is September 30, 2026.
FOR FURTHER INFORMATION CONTACT: Tammy Daniels, Finance and Loan
Analyst, Multifamily Housing Production and Preservation Division,
Rural Housing Service, USDA, STOP 0781, 1400 Independence Avenue SW,
Washington, DC 20250-0781, Telephone: (202) 720-0021 (this is not a
toll-free number); email: <a href="/cdn-cgi/l/email-protection#e692878b8b9fc88287888f838a95a693958287c8818990"><span class="__cf_email__" data-cfemail="f084919d9d89de94919e99959c83b085839491de979f86">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Authority
The RHS administers the 538 Guaranteed Rural Rental Housing Program
(GRRHP) loans under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2) and operates under 7 CFR part 3565. As set
forth in 7 CFR part 3565, the Agency will publish any changes to the
fees in a Notice in the Federal Register.
Background
Under the GRRHP, RHS guarantees loans to develop housing and
related facilities in rural areas. Section 538(g) authorizes the
Secretary of Agriculture to charge lenders certain fees for loan
guarantees (see, 42 U.S.C. 1490p-2(g)). The Agency uses these fees to
offset the cost of loan guarantees under the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.).
Revision
On March 3, 2022, the Agency announced four categories for initial
and annual guarantee fees: a Standard Reduced Fee and further reduced
fees for Workforce Housing; preservation of existing Section 515, 514/
516 Rural Development Properties; and Section 538 New Construction/
Substantial Rehabilitation with Green (87 FR 12077).
To align with Executive Order 14148, which revoked certain climate-
related executive orders, Executive Order 14394, which promotes
leveraging Opportunity Zones for construction, and current
Administration priorities, the Agency is replacing the Section 538
``New Construction/Substantial Rehabilitation with Green Category''
with Section 538 ``New Construction/Substantial Rehabilitation of
Properties Located in Qualified Opportunity Zones.''
The Agency sets the fee structure for the Section 538 New
Construction/Substantial Rehabilitation of Properties Located in
Qualified Opportunity Zones at 60 basis points for the initial
guarantee fee and 25 basis points for the annual guarantee fee.
A Qualified Opportunity Zone is an economically distressed
community where new investments may qualify for preferential tax
treatment if they meet certain conditions. Localities qualify as
Qualified Opportunity Zones when the State nominates them, and the
Internal Revenue Service certifies the nomination. Lenders must state
and certify in the lender's narrative that the property will be located
in a designated Qualified Opportunity Zone.
The revised fee structure is as follows:
----------------------------------------------------------------------------------------------------------------
Initial guarantee fee (due Annual guarantee fee (due
prior to or at closing) each year or portion of the
------------------------------ year the guarantee remains
in effect) *
Basis points -----------------------------
Basis points
----------------------------------------------------------------------------------------------------------------
Standard Fee Structure.............................. 65 35
Workforce Housing--Rents between 80%-115% AMI....... 60 25
Preservation of Existing Section 515, 514/516 Rural 60 25
Development Properties.............................
Section 538 New Construction/Substantial 60 25
Rehabilitation of Properties Located in Qualified
Opportunity Zones..................................
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* The Agency requires payment of the annual guarantee fee in advance. (Example: A loan that closes on December
31, 2025 will incur the annual fee for 2026)
The Agency will continue to apply the further reduced Green
category fee to complete the applications that it approved and
obligated before the effective date of the new fee category.
Applications that were eligible but not obligated before the effective
date will not qualify for this further reduced fee. However, the Agency
will allow applicants who submitted applications before implementation
of the new fee category, and whose applications the Agency has not yet
obligated, to revise those applications to demonstrate that the
property is located in a Qualified Opportunity Zone, if applicable.
Lenders should contact the appropriate Multifamily Housing Production
and Preservation, Processing and Report Review Branch processor for
guidance on submitting a revised application to
[[Page 61821]]
obtain the further reduced fee for Section 538 New Construction/
Substantial Rehabilitation in Qualified Opportunity Zones. Applications
that do not meet the eligibility criteria for any further reduced fee
will receive the standard reduced fee of 65 basis points for the
initial guarantee fee and 35 basis points for the annual guarantee fee.
Non-Discrimination 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, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at How to
File a Program Discrimination Complaint (<a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</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; (2) fax: (202) 690-7442; or
(3) email: <a href="/cdn-cgi/l/email-protection#8afaf8e5edf8ebe7a4e3e4feebe1efcafff9eeeba4ede5fc"><span class="__cf_email__" data-cfemail="1b6b69747c697a763572756f7a707e5b6e687f7a357c746d">[email protected]</span></a>.
George Kelly,
Administrator, Rural Housing Service.
[FR Doc. 2026-20022 Filed 9-29-26; 8:45 am]
BILLING CODE 3410-XV-P
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