USDA’s Rural Housing Service recently issued an Unnumbered Letter, Section 515 and Section 514 Multi-Family Housing Property Tenant Eligibility Documentation Retention Policies and Best Practices for Owners and Management.
The purpose of this Unnumbered Letter (UL) is to review the Tenant File documentation retention requirements for Rural Development (RD) Multi-Family Housing (MFH) Section 515 Rural Rental Housing and Section 514 Farm Labor Housing Owners. Form RD 3560-8, “Tenant Certification” and all related documentation are required to determine eligibility for occupancy and tenant contribution towards rent which can include Section 521 Rental Assistance (RA), when available. Section 515 and Section 514 Borrowers and their representative management agents must retain these documents according to the regulations for
these programs, in 7 CFR 3560.
This guidance is intended to specifically address the loss or unavailability of required Section 515 or Section 514 tenant eligibility documentation that may be requested as part of an Agency review and or during the transition of management for a property financed under these MFH direct loan programs.
The Unnumbered Letter for Section 515 and Section 514 Multi-Family Housing Property Tenant Eligibility Documentation Retention Policies and Best Practices for Owners and Management can be viewed here.