RHS Publishes Proposed Rule on Insurance Requirements in Multifamily Housing

CARH’S BROADCAST E-MAIL – Regulatory Update

October 25, 2023

In today’s Federal Register, the Rural Housing Service published a proposed rule entitled, Insurance Requirements in Multi-Family Housing Direct Loan and Grant Programs. The proposed rule would update the regulation for multifamily housing (MFH) insurance coverage and deductible requirements for properties financed through Rural Development (RD). According to RD, by updating insurance coverage and deductible requirements, it will align RD MFH insurance coverages and deductible limits with current affordable housing industry standards.

CARH, on behalf of our members, have had numerous discussions with RD on the serious impact of the rising insurance costs and deductibles on rural multifamily properties’ operations. In our February 28, 2023, Broadcast Email, we shared the letter sent to RD about our concerns and RD’s response. Since that time, many additional discussions have been held with RD and industry partners.

We will be submitting our comments before the deadline of December 26, 2023. If you have comments to the proposed rule and you would like CARH to consider adding to our comments, please send them to carh@carh.org no later than December 1, 2023.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website, www.carh.org.