The Rural Housing Service (RHS), a Rural Development agency of the U.S. Department of Agriculture (USDA), published a proposed rule on July 2, 2026, to amend its Direct Multifamily Housing (MFH) Loan and Grant Programs regulation. The change would add acquisition as an applicable form of assistance for direct MFH subsequent loans.

Under the proposal, owners of multifamily housing properties initially financed by RHS could apply for additional agency funds to help finance the acquisition of those properties in preservation transactions. RHS says the intent is to reduce administrative and regulatory burden for both industry partners and the agency by adding acquisition alongside the existing uses for subsequent MFH loans.

The rule is filed under Docket No. RHS-26-MFH-0265. It was published as a Proposed Rule in the Federal Register on July 2, 2026, and the public comment period is open through August 31, 2026.

For contractors and developers involved in USDA Section 515 and related rural multifamily housing preservation work, the rule would create a new financing lever specifically for acquisition-based preservation transactions, an option not currently available under the direct MFH subsequent loan framework.

Source: Federal Register