7 CFR § 3565.254 - Property standards.

---
identifier: "/us/cfr/t7/s3565.254"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 3565.254 - Property standards."
title_number: 7
title_name: "Agriculture"
section_number: "3565.254"
section_name: "Property standards."
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"
---


# 3565.254 Property standards.

(a) *Housing quality and site and neighborhood standards.* The property must meet the site and neighborhood requirements established by the state or locality, and those standards contained under 7 CFR part 1924, subparts A and C or any successor regulations.

(b) *Third party assessments.* As part of the application for a guaranteed loan, the lender must provide documentation of qualified third parties' assessments of the property's physical condition and any environmental conditions or hazards which may have a bearing on the market value of the property. These assessments must include:

(1) An acceptable property appraisal.

(2) A Phase I Environmental Site Assessment (American Society of Testing and Materials).

(3) A Standard Flood Hazard Determination.

(4) In the case of the purchase of an existing structure, rehabilitation or refinancing, a physical needs assessment.