Butler, MO, Jun 23, 2011 -- In a ceremony on Thursday, June 23, 2011, Pam Anglin, USDA Rural Development Missouri State Housing Program Director, presented a certificate of congratulations to the Board of Directors of El Dorado Springs Housing, Inc. to celebrate the reamortization of their loans. The property, which consists of 51 one bedroom apartments, was originally constructed with funds from the United States Department of Agriculture. The apartments were originally constructed in two phases, from 1974 to 1978. The interest rates of the original loans ranged from 8% to 8.75%
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 $8,457 per year) and reduced government subsidy to the property due to the decreased interest rate. The note rents were reduced, which allowed the rent amount to decrease for many of the tenants. The maximum note rent now is $328 with utilities included.
“I am happy to celebrate the reamortization of the loans for the El Dorado Springs Housing, Inc.,“ 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.” Mike Landers, Vice President of Bell Management was presented a door mat for the front door and a certificate of congratulations from USDA Rural Development. Bell Management manages the day-to-day operations of the complex.
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 El Dorado Springs Housing, Inc., 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 Carol Platt, Area Specialist, firstname.lastname@example.org, 625 West Nursery, Butler, MO 64730 at (660)679-6112 x4.
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