Rural Housing Revitalization Act of 1989

Rural Housing Revitalization Act of 1989 - Amends the Housing Act of 1949 to extend the Secretary of Agriculture's rural housing loan insurance and guarantee, rental assistance payment contract, rental housing loan, and mutual and self-help housing grant and loan authorities through FY 1991. Authorizes appropriations to the Farmers Home Administration through FY 1991 to carry out this Act.

Authorizes the Secretary to defer payment of up to 20 percent of the principal on a loan made or insured for housing and buildings on adequate farms where deferral is necessary to enable the borrower to afford payment on the loan and certain other conditions are met.

Directs the Secretary to designate as targeted underserved areas 60 counties and communities in FY 1990 and 100 counties and communities in FY 1991 that have severe, unmet housing needs. Defines eligibility criteria and requires an outreach program and set-asides of assistance for such areas. Authorizes the Secretary to provide grants for such areas for the development of housing assistance capacity (capacity building grants).

Directs the Secretary to provide 90 percent-guaranteed loans to moderate income borrowers with less than the median income of an area for the acquisition or construction of a single-family principal residence. Mandates priority to first-time buyers and permits as a loan condition successful completion of a homebuyer counseling program. Requires the Secretary also to provide 90 percent-guaranteed loans for housing rehabilitation in certain areas the Secretary shall target. Requires the Secretary to provide technical assistance to borrowers, lenders, and realtors in the guaranteed loan program. Authorizes appropriations.

Authorizes the Secretary to make grants to nonprofit organizations to demonstrate effective public-private partnerships for the development of low-income rural housing. Authorizes appropriations for FY 1990 and 1991.

Provides for the continuing availability of deobligated funds and the reallocation of other funds under housing preservation grants.

Directs the Secretary, in the event of default involving a security interest in tribal allotted or trust land, to pursue liquidation only after offering to transfer the account to, and after liquidation to sell, transfer, or otherwise alienate the property only to, an eligible tribal member, the tribe, or an Indian housing authority.

Provides for the transfer of inventory under the loan program for housing and buildings on adequate farms to the insured loan program for housing and related facilities for domestic farm labor.