LaPlata, Missouri, Apr 05, 2011 -- On Tuesday, April 5, 2011, at 6:00 p.m., the Board of Directors of LaPlata Rural Rental Housing Corporation held an open house to celebrate the reamortization of their loans. The property, which consists of 60 one bedroom apartments, was originally constructed with funds from the United States Department of Agriculture. The apartments were originally constructed in four phases, between 1969 to 1984. The interest rates of the original loans ranged from 5.125% to 10.75%
The board requested approval to reamortize their unpaid balances specifically to reduce the interest rate and to reduce their loan payments. Their request was approved by USDA and the loans were reamortized.
The reamortization resulted in a reduced payment to Rural Development (savings of $8,159.88 per year), reduced government subsidy to the property due to the decreased interest rate, and the property now has one rent schedule for all apartments instead of four separate rent schedules. Prior to the reamortization, the rents were $220 to $393, with different rents at each location. At the time of reamortization, the board implemented a rent change and set the rents at $245 to $255. The utilities are included with the rent.
“I am happy to celebrate the reamortization of the loans for the LaPlata Rural Rental Housing Corporation,“ said Anita J. Dunning, Missouri State Director for USDA Rural Development. “The lower interest rates will help keep the rental rates affordable for our tenants by reducing the mortgage payments on the rental complex.” June Magers, Board President, of LaPlata Rural Rental Housing Corporation, was presented a certificate of appreciation from USDA Rural Development.
Affordable rental property in rural areas is an important part of any rural area. Apartment living can be an alternative for many people who cannot afford the purchase price of a home or may not be able to maintain a house. The USDA Rural Development, through the Rural Rental Housing (RRH) program, provides assistance to rural communities in meeting the needs of adequate, safe and affordable housing.
Since the beginning of the RRH program in Missouri in the late 1960’s, Rural Development (formerly Farmers Home Administration) has financed over 900 rental projects in 113 of the 114 Missouri counties. Through the hard work of dedicated citizens that volunteered their time working through a non-profit corporation, such as LaPlata Rural Rental Housing Corporation, this federal program has benefited many rural communities.
For those interested in rental projects funded by USDA Rural Development in a particular county, you can access information by visiting http://www.rurdev.usda.gov/mo/mfhpage.htm and follow the instructions. The name of the complex, type of apartments (elderly or family), number of apartment units and the contact person are available online.
Anyone seeking more information about the Rural Rental Housing program or any other USDA Rural Development program may visit the homepage at http://www.rurdev.usda.gov/mo/, or contact Rande S. Bryan, Area Director, firstname.lastname@example.org, 2410 South Franklin Street, Kirksville, MO 63501 at (660) 665-3274, extension 4.
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To file a complaint of discrimination write USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W.,
Washington, DC 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD).