The U.S. Department of Agriculture’s Rural Development (RD) recently issued the following unnumbered letter concerning the management of unused rental assistance (RA). RD considers unused RA as assistance money that has not been used in the last six months in Section 515 properties and the last 12 months in Section 514 properties. It does not include RA for properties with mortgages that have matured through normal payments or have been terminated by prepayment or foreclosure.
RD issued guidance that required approval by the National Office for the transfer of all RA, including unused RA, in a response budget reductions in the RA program which occurred in 2013. Through this unnumbered letter, RD is announcing a reversion of that policy. State Directors will now be permitted to exercise RA transfer authority for unused RA without National Office approval. This change will be conducted through a trial period for one-year beginning with the issuance of this unnumbered letter.
States must continue to provide the required semi-annual report on unused RA, and the National Office will monitor RA transfers monthly in conjunction with the National Finance and Accounting Operations Center.
Click here to view the Unnumbered Letter.
Posted in: USDA