Across the Midwest, MHP delivers crucial work to preserve rural rental housing through the USDA Rural Rental Housing Loans Section 515 program (also known as USDA RD 515). Oftentimes, this program is the only pathway for rental opportunities in rural communities. However, a majority of these loans are maturing, or ending, in the next decades, putting these developments on the market to be bought by for-profit organizations. Without MHP’s partnership, hundreds of Americans could be displaced from their homes.  

With the assistance of MHP, under the terms of a purchase agreement currently under negotiation, Swift County HRA intends to acquire the property for one dollar and assume the existing USDA RD 515 mortgage. This mortgage transfer will allow the HRA to preserve the 22 rental assistance units tied to the loan. The HRA plans to supplement this with an application for the remaining two rental assistance units to ensure further affordability for current and future tenants. 

The acquisition will be followed by a significant rehabilitation effort. To finance the renovation, MHP assisted the HRA in preparing funding applications to the Federal Home Loan Bank of Des Moines’ Affordable Housing Program and Minnesota Housing Finance Agency, with assistance from legal counsel Angela Christy and Blumenthals Architecture to complete all required documentation. These funds will improve the property’s amenities and livability for tenants, such as community and office spaces. 

As part of the funding commitments, the HRA remains dedicated to serving low-income households, ensuring community members will stay safe in their homes for another 30 years.