USDA ANNOUNCES $38 MILLION IN GUARANTEED LOANS FOR RURAL RENTAL HOUSING PROGRAM
WASHINGTON, July 31, 1998--Agriculture Secretary Dan Glickman today announced that nearly $38 million is currently available for guaranteed rural housing loans for new rental housing construction through qualified financial lenders. USDA's Rural Housing Service (RHS) makes affordable housing available through a joint partnership between the Federal government and major financial lending institutions.
"This partnership continues the Clinton Administration pledge to assist families in rural communities," said Glickman. "Through this agreement, rural Americans in need of rental housing can access affordable housing that they would otherwise be denied."
Under the RHS Guaranteed Rural Rental Housing Program, qualified lenders are authorized to originate, underwrite and close loans for multifamily housing complexes requiring new construction. In turn, USDA will guarantee the lender's loan up to 90 percent of the total development cost and will commit to paying up to 90 percent of the outstanding principal and interest in the event of a default on the loan. The program has had less than a 1 percent default rate over its history.
In 1997, USDA assisted over a million rural families through direct and guaranteed loans for home ownership and rental housing. USDA spent approximately $51.8 million in assistance and created over 800 jobs which generated $26 million in wage earnings.
Under Federal guidelines posted in the Notice of Fund Availability, interested and eligible lenders must submit loan applications with RHS by August 17, 1998 at 4:00 p.m. Eastern Standard Time.
For more information regarding the 538 Guaranteed Rural Rental Housing Program call Obediah Baker at 202-720-1604.
Media Contact: Roger Salazar, (202) 720-4623
roger.salazar@usda.gov
Public Contact: Mike Jones, (202) 720-6484
mike.jones@usda.gov
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