RD Rental Assistance Obligation Tool

USDA Rural Development (RD), issued an Unnumbered Letter dated March 18, 2016, entitled Rental Assistance Obligation Tool.

For many years RD used a state-wide averaging system for determining Rental Assistance (RA) usage for properties. Beginning October 1, 2015, the new RA Obligation Tool (Tool) was implemented. The Tool is intended to determine RA needs based in part on actual RA usage in properties. The Tool is also projected to create efficient and automated time-saving obligation process; speed funds to the borrower; and to use as near real-time data as possible so as to project the cost of a 12-month RA agreement.

The just issued UL describes how the Obligation Tool works. RD accompanied the UL with a PowerPoint presentation that describes in more detail the calculation methodology that is used by the Tool. Both the UL and PDF of the presentation are attached to this email for your convenience.

RD will continue to monitor the Tool and is doing quality assurance tests on a regular basis. It is also important that AHAIN members let the AHAIN office know if there are any issues with this RA Obligation Tool.

Click here to view the unnumbered letter.

Click here to view the Powerpoint Presentation slides.

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