Farmers Home Administration's (FmHA) Operation of the Rural Construction and Improvement Loan Programs

GAO reviewed the Farmers Home Administration's (FmHA) operation of the rural construction and improvement loan programs pursuant to sections 502 and 504 of the Housing Act of 1949, as amended ("Act"). Under section 502, 42 U.S.C. 1472, FmHA is authorized to provide direct and insured loans for the purposes of constructing or improving housing and farm buildings. Under section 504, 42 U.S.C. 1474, FmHA may make loans, grants, or combined loan-grants not exceeding $5,000 per borrower for the purposes of repair or improvement of unsafe or unsanitary housing or farm buildings. Only persons who cannot qualify for a section 502 loan are eligible for assistance under section 504.