NEWS RELEASE

USDA HELPS DELAWARE FAMILIES BUILD HOMES

Lincoln, DE June 1, 2005 – United States Department of Agriculture (USDA) Administrator for Rural Development Russell T. Davis visited the First State to kickoff National Homeownership Month at Cedar Creek Landing, a self-help housing subdivision South of Milford where a majority of the homes are being built by the homeowners and have been financed by USDA Rural Development.  Administrator Davis along with USDA State Director Marlene Elliott and local housing officials helped raise the first wall on one family’s new home.

            “This year is the 70^th Anniversary of USDA’s commitment to rural homeownership,” said Davis.  “From the Resettlement Administration in 1935 through the Farm Security Administration, Farmers Home Administration, and today’s Rural Development – USDA continues to extend the opportunity of homeownership to many thousands of rural families each and every year.  The investment each of these families is making through their sweat-equity is helping them to own their future and provide their families a place to call home.” 

            On May 25, 2005, President Bush proclaimed the month of June as National Homeownership Month, a time to celebrate the nation’s high rate of homeownership, and a time to do more to help additional families realize their dream and become homeowners.  USDA’s self-help housing program is a labor intensive “sweat equity” program where homeowners contribute labor to help each other build their new homes.  The program requires the families to contribute 65% of their own labor and assists groups of 5 to 10 families or individuals who want to build their own homes under the supervision of a professional construction foreman.

            “All across rural Delaware, the Rural Development staff takes great pride in helping individuals and families achieve their homeownership dreams,” said Elliott.  “And for many of our customers it often means helping those who are renters to become first time homeowners, but Rural Development does not do this alone.  It is with the help of great partners like Milford Housing Development Corporation who oversee and manage Rural Development’s Self-Help Housing Program at this subdivision.”

            Milford Housing Development Corporation (MHDC), a nonprofit organized in 1977, owns the property at Cedar Creek Landing off Rt. 1 and Rt. 207 that is in its third phase of construction.   Over the past five years, USDA Rural Development has provided the non-profit group nearly $1 million in technical assistance grants that is used for administrative expenses, power tools, and salary for a professional construction foreman.  To date, 22 homeowners have completed the self-help program and are living in their new homes and 15 families have their homes under construction.   “With the rising costs of housing in Delaware and land prices reaching unbelievable heights, MHDC is proud to offer self-help housing as an option to assist with the widening gap in quality affordable housing,” said David Moore, President MHDC.  “MHDC has leveraged over $5.1 million dollars for the purpose of developing self-help housing and has created $1.2 million in equity for our self-help homeowners.”           

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. Further information on rural programs is available by calling their State Office that serves Delaware and Maryland at (302) 857-3580 or their local office that serves Sussex County at (302) 856-3990, ext. 4.  You can also visit their web site at http://www.rurdev.usda.gov.

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USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer. Complaints of discrimination should be sent to: USDA, Director, Office of Civil Rights, Washington, D.C. 20250-9410.