For more than 20 years now; USDA-Rural Development has been able to provide loans & in some cases grants to assist loan applicants to purchase modest single family homes in rural communities. The definition that the agencyuses for "rural" has allowed the agency to provide financing in cities & towns of less than 25,000 people; as long as the community was considered "rural in nature" by the agency. The size of a town is based upon the most recent U.S. Census data. The agency has made the decision to utilize the 2010 Census data beginning with Fiscal Year 2013 (10/01/2012) Presently, our regulations allow an "exception" which allows our Rural Housing programs to participate in communities up to 25,000 people. With the adoption of the 2010 Census, this "exception" will be lost & the regulations will then limit our participation to towns of less than 10,000 people; & for towns between 10,000 & 20,000 that are not part of a Metropolitan Statistical Area (MSA). MSA's have been broadened over the past 10 years to include most rural areas within Massachusetts, Connecticut and Rhode Island. This update reflects recently released changes from OMB affecting some MSA areas. In the case of Connecticut; the Towns of Killingly and Plainfield will no longer be eligible. This is a change from our earlier determination of their eligibility. We are asking that this exception be grandfathered so that many of the borrowers who would be affected by this change can still have the opportunity to obtain 100% financing thru the USDA Rural Guarantee Program.