Release No.0248.99
Media Contact: Andrew Kauders (202) 720-4623
andrew.kauders@usda.gov
Public Contact: La Jaycee Brown (202) 720-9741
lajaycee.brown@usda.gov
USDA TO PROVIDE $74 MILLION IN RURAL RENTAL HOUSING LOANS
ORLANDO, FLA., June 11, 1999 -- Agriculture Secretary Dan Glickman today announced that the United States Department of Agriculture (USDA) will provide more than $74 million during the next 100 days for about 2,500 new rental housing units. This about doubles the amount available in 1998. The program provides affordable housing options to working people and senior citizens who otherwise couldn't access safe and decent rental housing.
"The rental housing program not only provides decent and affordable housing, but is an important component of USDA's economic development efforts," Glickman said in Orlando, Fla., while participating in a National Homeownership Week event. "The availability of affordable rental housing is often a key element in whether a business decides to locate or remain in a rural community. With increased funding this year, the dream of living in decent, safe and affordable housing will become a reality for thousands more rural people across the country."
Under the Guaranteed Rural Rental Housing Program, USDA's Rural Housing Service provides loan guarantees to lenders, who in turn provide loans for the construction of multi-family housing complexes in rural areas. USDA will guarantee the lender's loan, up to 90 percent of the total development cost.
"Every citizen, whether living in rural or urban areas, deserves a place to call home, and yet millions of rural Americans remain in need of housing," said Jill Long Thompson, USDA under secretary for Rural Development. "In this program's brief three-year history, we will have provided financial support for about $148 million in new rural rental housing. This and other USDA housing programs are making a substantial contribution to living conditions in rural communities."
Program applications and procedures will be published in the Notice of Funding Availability in the June 17, 1999 Federal Register. Interested lenders must submit loan applications to their local Rural Development State Office by 5:00 p.m., Aug. 31, 1999.
For more information about this program, visit your local USDA Rural Development office or USDA Service Center, call the Rural Development national office at (202) 720-4323.
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