Rural Development


USDA Rural Development Housing Projects with a Section 515 Rural Rental Housing (RRH) loan are required to submit annual financial reports no later than 90 days following the close of the project fiscal year. The requirements for reporting are established based on combined Federal Financial Assistance and risk thresholds for each borrower, effective for those with a fiscal year ending 12/31/2019 or after.

For-Profit or Limited Profit
Total Borrower Federal Financial Assistance* Forms RD 3560-7 and 3560-10 Borrower Certification of Performance Standards Uniform Administrative Requirements Audit required
RD Borrower with less than $500,000 in Federal financial assistance Yes Yes No
RD Borrower with $500,000 or greater in Federal financial assistance Yes Yes Yes**


*  See RD Programs Audit Determination Worksheet and Major Program Determination – Attachment 4-G of RD HB-2-3560. Compilation of Prescribed Forms may be necessary, if an audited financial statement is not required by another federal agency or other business agreement.

**  Must be completed by an Independent CPA.

HUD Requirements

Entities participating in the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) multifamily housing programs and subject to uniform financial reporting standards set forth in 24 CFR Part 5, Subpart H and 24 CFR Part 202.5(g) are required to have an audit that consists of two components – a financial statement audit and a compliance audit of the entity’s major HUD programs.  The audit must be submitted no later than 90 days following the end of the fiscal year.

A major program is defined as an individual assistance program for which expenditures equaled or exceeded $500,000 during the applicable year or a project that had an outstanding HUD-insured or HUD-guaranteed loan balance equal to or exceeding $500,000 as of the end of the period under audit.

Let us exceed your expectations. Contact Heather Lehr at (888) 388-1040 to learn more.


View All Rural Development Resources