Camdenton, MO, Jun 30, 2011 -- On Thursday, June 30, 2011, at 10:00 a.m., the Board of Directors of Camden Manors, Inc., held an open house 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, between 1975 to 1978. The interest rates of the original loans ranged from 8.125% to 8.5%
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 $8,240.04 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 $238 to $340, with different rents at each location. At the time of reamortization, the board implemented a rent change and set the rents at $250 to $260. The utilities are included with the rent.
“Reamortization of loans for Camden Manors is a benefit to everyone in the community. I am pleased that reduced interest rates and loan payments are resulting in lower rent payments for residents.” said by U.S. Representative Vicky Hartzler.
“The Board of Directors of Camden Manor’s Inc. was happy to be given the opportunity to re-amortize our debt to the United States Department of Agriculture” said by David Welch, Board Secretary, in order to save several thousand dollars a year in interest which can be used to make improvements to Camden Manor and to keep the rent affordable for our residents. We appreciate the assistance of Lynette Bilyeu of USDA and staff in helping us re-amortize the debt.
“I am happy to celebrate the reamortization of the loans for Camden Manors 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.” Joe Chasin, Board President, of Camden Manors Inc., was presented a certificate of congratulations 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 Camden Manors 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 Lynette Bilyeu, Area Specialist, firstname.lastname@example.org, 1306 N 2nd Street, Clinton, MO 64735 at (660) 885-5567, extension 4.
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