USDA Rural Development Low Income Housing Program question

[David Butler]

I found a 32 unit apartment complex (16-1/1--$500/month and 16-2/1-$550/month) that is enrolled in the USDA Rural Development Low Income Housing Program until 2035.  The complex is listed for $675,000 and this price comes from each apartment being valued at $90,000X32=$2.8 million discounted 76% for the number of years in the program.  Buyers will assume a 100K loan and must bring the remaining $575K to closing in cash as no additional loans can encumber the property.  Here is the kicker:  The complex needs to be managed by a USDA approved property management company who collects all rents, performs maintenance and upgrades and in general runs the property.  Owners will collect $3,925 each year--thats it.  This return is .68%--you can more than that in a money market account.  I am assuming the carrot is that you will get the property in 2035 that will be worth is market value then and in essence paid $675K for that but made nothing in the meantime.  Does anyone know about this program and could explain it?  What would have this deal looked like day 1?