Rural Development: Notice of Depleted Funding from USDA

 

USDA has announced that Rural Development‘s allocated budget for FY 2009/2010 is projected to be exhausted by the end of April, 2010. USDA‘s fiscal year runs from October 1st through September 30th each year; while we anticipate funds will be appropriated prior to October 1st, any timing or definite funding prior to standard process are not known or guaranteed.

 

It is anticipated for a new budget to be approved, but the timing is unknown. During this time of budget depletion, it is important to share information with your customers to make them aware that their loan may have to fund on a program other than Rural Housing loan program.

 

This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010. Once funding is exhausted, the Agency will not issue Conditional Commitments ―subject to receipt of appropriated funds.” This is because it is not certain when additional funding will be available. Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita. Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited.