|PARTNERSHIPS PROVIDE NEEDED REHABILITATION FOR MULTI-FAMILY HOUSING BORROWERS|
|, Mar 31, 2011
Outline Of Need:
Many Rural Development (RD) Multi-Family Housing complexes were built in the early 70's and the need for rehabilitation has become critical. Approximately 40% of these Missouri RD financed properties were made to volunteer, non-profit boards that provide housing for the elderly and disabled. The other 60% were for limited profits and provide rental housing for low-income individuals and families. Two challenges exist: (1) there are very minimal resources to help with rehabilitation of these properties and (2) rents must be kept affordable for the residents.
How Rural Development Helped:
Rural Development established a relationship with Federal Home Loan Bank (FHLB) of Des Moines, Iowa, to leverage RD funds with their Affordable Housing Program (AHP) and with the RD Multi-Family Housing Preservation and Revitalization Program (MPR) to complete the needed repairs. The MPR program allows funds to repair and/or defer RD payments allowing owners
to use those funds for essential capital improvements. Partnering with Federal Home Loan Bank of Des Moines, Iowa, staff of Regional Planning Commissions, Community Action Agencies, and Missouri Housing Development Commission has generated essential needed repairs to the aging RD multi-family housing portfolio.
The much needed rehabilitation to the complexes has improved the quality of life for rural Missourians. The installation of major capital improvements such as installing new heating and air conditioning systems, allow tenants with health issues to breathe easier. The new roofs, windows, floor covering and appliances allow the tenants to enjoy their home and be proud of where they live. By utilizing grant funds to do the repairs, management of the complexes do not have to raise the rents, therefore helping those with very limited income have an affordable and safe place to live.
Since the inception of this partnership with FHLB, Missouri has had over 39 properties totaling over $9 million selected for funding.