7 CFR § 3565.213 - Geographic distribution.

---
identifier: "/us/cfr/t7/s3565.213"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 3565.213 - Geographic distribution."
title_number: 7
title_name: "Agriculture"
section_number: "3565.213"
section_name: "Geographic distribution."
chapter_name: "RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "3565"
part_name: "GUARANTEED RURAL RENTAL HOUSING PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480."
regulatory_source: "63 FR 39458, July 22, 1998, unless otherwise noted."
cfr_part: "3565"
---


# 3565.213 Geographic distribution.

The Agency may refuse to guarantee a loan in an area where there is undue risk due to a concentration in the market of properties subject to a Agency guaranteed loan. The Agency will consider the credit quality of the loan and overall market conditions in making a determination of undue risk. If any of the Agency guaranteed loans in the market are experiencing vacancy rates in excess of 15% and the vacancy is due to market conditions, the Agency will invoke this provision and not guarantee the loan.