NEWS RELEASE

United States Department of Agriculture • Rural Development

1221 College Park Drive, Suite 200, Dover, DE  19904

Phone: (302) 857-3580 • Fax: (302) 857-3640 •  TDD (302) 857-3585 •  Web: http://www.rurdev.usda.gov

USDA: Preserving the American Dream

(Laurel, DE) June 4, 2009 – USDA Rural Development Under Secretary Dallas Tonsager helped celebrate National Homeownership Month today at a Self-Help housing development managed by Milford Housing Development Corporation (MHDC) and funded by USDA Rural Development.

“Across this nation, our homeownership program has enjoyed great success, but we will not rest on past accomplishments,” Tonsager said. “President Barack Obama has made homeownership a cornerstone of his economic recovery plan by taking decisive action to protect the homes of existing owners and to provide opportunities for all Americans seeking to buy their first home.”

USDA’s housing programs are helping more people than ever; USDA provided homeownership loans to more than 72,000 rural Americans last year - a record number.  And through the American Recovery and Reinvestment Act (ARRA), USDA is on track to help more than 130,000 individuals and families this year.  Since the bill’s passage in mid February, USDA has distributed $4.3 billion nationally to 32,000 families. In Delaware, that equates to more than $13.5 million to 79 families.

In dozens of communities across the nation, “Preserving Homeownership” is the theme for events and activities throughout June as communities and USDA highlight the benefits of homeownership and share information on ways families can remain successful homeowners during difficult economic times.  Many activities are focusing on weatherization and programs to help rural homeowners make their homes more energy efficient, reduce health and safety risks and improve accessibility for individuals with disabilities.

At the Self-Help housing development, Manchester Manor, ten families are working side-by-side under the supervision of a professional construction foreman to complete work on each other’s homes.  In a sense, they are trading hours of labor for a home of their own.  It is estimated that each participant’s “sweat equity” is equivalent to $44,000 in mortgage savings.  No one in the group moves in until all the homes have been completed. The first group of homes at Manchester Manor started construction in September 2008.  The homes are on track to be completed by mid to late Summer 2009.  Construction of these Self-Help homes are not funded through the ARRA.

David Moore, President and CEO MHDC said, “Homeownership is at the heart of the American Dream, it is not to be entered into lightly.  Among other things owning a home provides emotional security, a home is the first school for our young ones where they learn what is right and what is good and where family’s joy is shared and sorrow eased.  June is National Homeownership month and in these tough economic times, we at MHDC are proud to be offering our partner families the opportunity to become homeowners through our Self-Help Housing Program. We congratulate USDA Rural Development and our tireless partners and supporters who have made the commitment to assist us as the leader in affordable housing production in Southern Delaware.”

MHDC is certified as a 100% Energy Star builder and has won a federal award for its construction of energy efficient homes in Lincoln, Delaware and a senior rental community in Felton, Delaware. The homes that are being constructed in Laurel will also include energy savings components like energy efficient appliances and energy rated insulation and roofing.

USDA’s investment at Manchester Manor for the 10 homes that are under construction is estimated to be $2 million. The funding that has been provided is in the form of a Self-Help Housing Technical Assistance Grant that is used to pay expenses accumulated by MHDC for administrative costs, the salary for a construction foreman, and certain power tools.  Funding is also in the form of homeownership loans to the new homeowners. The average cost of a home at Manchester Manor is $173,700.

In addition to the Laurel site, Rural Development is also supporting two other subdivisions managed by MHDC using the self-help method of construction located in Bridgeville, Delaware and Camden, Delaware.  Applications to participate in the self-help homeownership program are being accepted for all locations.

        USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development and supports the creation of critical community and technology infrastructure.   Further information on USDA Rural Development programs can be obtained by calling their Georgetown office at (302) 856-3990, ext. 4 or by visiting their website at www.rurdev.usda.gov.

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“USDA is an equal opportunity provider, employer and lender.”

To file a complaint of discrimination write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W.,

 Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).