USDA SUPPORTS $78 MILLION IN NEW RURAL RENTAL HOUSING
WASHINGTON, October 20, 1998 -- Agriculture Secretary Dan Glickman today announced loan guarantees for 28 rural rental housing developments in 14 states. The U.S. Department of Agriculture loan guarantees will create 1,110 new apartments for low- to moderate-income rural people.
Part of USDA's ongoing housing assistance efforts, this financing will also help create more than 1,143 jobs, generating $35.5 million in wages.
"The Clinton Administration is committed to expanding housing opportunities, creating jobs and developing sustainable communities in rural America," Glickman said. "Through this loan guarantee program, USDA assures that thousands of rural people will soon have a better, more affordable place to live."
Slightly more than 50 percent of the $78.7 million construction cost will be covered by USDA loan guarantees with the rest covered by a combination of buyer equity investments and third party loans from banks, mortgage companies, finance agencies, and state housing development funds.
"With our guaranteed rural rental housing loans, USDA helps not only families, but entire communities with affordable housing in rural areas," said Jill Long Thompson, USDA under secretary for rural development. "This program complements our traditional rental housing loan program which serves families and the elderly with average annual incomes of less than $7,300."
The new housing developments will be located in: Arizona (two developments), California (three developments), Idaho, Indiana (two developments), Iowa (four developments), Kansas, Maine, Michigan (three developments), Nebraska (four developments), Nevada, North Carolina, Oklahoma (two developments), Pennsylvania (two developments), and Tennessee.
Since 1996, USDA guaranteed rural rental housing loans have been used to build more than $150 million worth of new rural rental housing. This investment has created 2,293 rental units in 54 housing developments nationwide.
USDA assists about 1.13 million rural families through direct and guaranteed loans for homeownership and rental housing, yet more than 1.5 million families remain in need of housing.
Media Contact: Jim Brownlee, (202) 720-2091
jim.brownlee@usda.gov
Public Contact: Dan Campbell, (202) 720-6483
dcampbel@rurdev.usda.gov
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