On March 23, 2026, USDA Rural Development issued a Notice in the Federal Register (see link) that will allow properties built through the mutual self-help housing program to exceed the new Area Loan Limits as long as the 502 loan itself does not exceed the limit. The pilot program is limited in scope to 24 states – Alaska, Arizona, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Maine, Maryland, Michigan, Minnesota, Montana, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Washington, Utah, and Virginia. It is also limited in duration, in effect for two full years beginning March 23, 2026.
We continue to work on options to rescind the revisions to the 3550 Handbook enacted in February, but this concession will relieve a major problem for 523 grantees, and is proof positive that our advocacy counts.
Read more: Federal Register Vol. 91, No. 55
