Funding for the Forgotten Few

A special supplemental report to the 1995 American Housing Survey revealed that approximately 1.4 million, or 24 percent, of nonmetro householders age 65 and over report having one or more physical limitations. The same report indicated that over 600,000 rural seniors have undertaken home modifications such as installation of grabbars or handrails and extra wide doorways.

Rural elderly may be eligible for the Section 504 grants administered by the U.S. Department of Agriculture Rural Development. These funds can be used for repairs and improvements that will remove health and safety hazards, or to repair or remodel homes to make them accessible and useable for household members with disabilities.

The U.S. Department of Agriculture Rural Development administers the Section 504 loan/grant program to help very low income owner occupants of single family homes in rural homes repair their homes. Loan funds are available for repairs to improve or modernize, make it safer or more sanitary, or remove health and safety hazards. For homeowners 62 and over who cannot repay a loan, grant funds are available to remove health or safety hazards, or remodel dwellings to make them accessible to household members with disabilities.

Section 504 loan and grant funds can be used to repair mobile or manufactured homes if the following conditions apply: 1) the applicant owns the home and the site and occupied the home prior to filing an application; 2) the repairs are needed to remove health and safety hazards; and, 3) the home is on a permanent foundation, or will be put on a permanent foundation with Section 504 funds.

In order to qualify for a Section 504 loan or grant program, the adjusted household income at the time of loan/grant approval and at loan closing cannot be more than the applicable very low-income limit. Low-income people are not eligible for assistance under Section 504. One of the requirements for a household to qualify for the Section 504 grant is that at least one of the applicants be 62 years or older.

The lifetime grant assistance to any applicant cannot exceed a cumulative total of $7,500.

For more information about the USDA Rural Development Section 504 funding program, please contact your state USDA office. The number can be found in the Blue Pages of your local telephone directory. If you have internet access, visit the following website for more information: http://www.rurdev.usda.gov/rhs/

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