Single Family Housing Guaranteed Loan Program-Income Producing Accessory Dwelling Unit (ADU) Provisions

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The Rural Housing Service (RHS or the Agency), an agency of the Rural Development mission area within the United States Department of Agriculture (USDA), is issuing a proposed rule to amend the current Single Family Housing Guaranteed Loan Program (SFHGLP) regulation. These proposed changes are intended to allow the Agency to finance a single family home with a single or multiple income producing Accessory Dwelling Units (ADU). Additionally, we propose to clarify that borrowers can finance properties with features designed to accommodate home-based operations with non-commercial real estate features. The plain language summary of the proposal is available on Regulations.gov in the docket for rulemaking.