---
kind: "section"
citation: "7 C.F.R. § 1940.564"
title: "7"
number: "1940.564"
heading: "Section 502 subsidized guaranteed Rural Housing loans."
url: "https://uscodex.org/cfr/7/1940.564"
---

# §1940.564. Section 502 subsidized guaranteed Rural Housing loans.

- (a) **Amount available for allocations.** See [§ 1940.552(a)](/cfr/7/1940.552.md?p=a) of this subpart.
- (b) **Basic formula criteria, data source and weight.** See [§ 1940.552(b)](/cfr/7/1940.552.md?p=b) of this subpart. The criteria used in the basic formula are:
  - (1) State's percentage of the National number of rural occupied substandard units,
  - (2) State's percentage of the National rural population in places of less than 2,500 population,
  - (3) State's percentage of the national number of rural households below 80 percent of the area median income, and
  - (4) State's percentage of the national number of rural renter households paying more than 35 percent of income for rent. The data source for each criterion is specified in [paragraph (b)(5)](#b-5) of this section. Each criterion is assigned a specific weight according to its relevance in determining need. The percentage representing each criterion is multiplied by the weight factor and summed to arrive at a basic State factor (SF) as follows:

    SF = (criterion 1 × weight of 30%) + (criterion 2 × weight of 10%) + (criterion 3 × weight of 30%) + (criterion 4 × weight of 30%)

  - (5) The data source for the criteria specified in paragraphs [(b)(1)](#b-1), [(b)(2)](#b-2), and [(b)(4)](#b-4) of this section is the most recent decennial Census. The data source for the criterion specified in [paragraph (b)(3)](#b-3) of this section is 5-year income data from the American Community Survey (ACS) or, if needed, other Census Bureau data.
- (c) **Basic formula allocation.** See [§ 1940.552(c)](/cfr/7/1940.552.md?p=c) of this subpart.
- (d) **Transition formula.** See [§ 1940.552(d)](/cfr/7/1940.552.md?p=d) of this subpart. The percentage range used for [section 502](/cfr/7/502.md) guaranteed RH loans is plus or minus 15.
- (e) **Base allocation.** See [§ 1940.552(e)](/cfr/7/1940.552.md?p=e) of this subpart. Jurisdictions receiving administrative allocations do not receive base allocations.
- (f) **Administration allocations.** See [§ 1940.552(f)](/cfr/7/1940.552.md?p=f) of this subpart. Jurisdictions receiving formula allocations do not receive administrative allocations.
- (g) **Reserve.** See [§ 1940.552(g)](/cfr/7/1940.552.md?p=g) of this subpart.
- (h) **Pooling of funds.** See [§ 1940.552(h)](/cfr/7/1940.552.md?p=h) of this subpart.
  - (1) **Mid-year—** If used in a particular fiscal year, available funds unobligated as of the pooling date are pooled and redistributed based on the formula used to allocate funds initially.
  - (2) **Year-end—** Pooled funds are placed in a National Office reserve and are available as determined administratively.
- (i) **Availability of the allocation.** See [§ 1940.552(i)](/cfr/7/1940.552.md?p=i) of this subpart.
- (j) **Suballocation by the State Director.** See [§ 1940.552(j)](/cfr/7/1940.552.md?p=j) of this subpart. Annually, the Administrator will advise State Director's whether or not suballocation within the State Office jurisdiction will be required for the guaranteed Housing program.
- (k) **Other documentation.** Not applicable.

## Notes

### Amendments

[56 FR 10509, Mar. 13, 1991, as amended at 80 FR 9877, Feb. 24, 2015]

### Source

Source: 50 FR 24180, June 10, 1985, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C. 1480.

### Amendments

[56 FR 10509, Mar. 13, 1991, as amended at 80 FR 9877, Feb. 24, 2015]