NEWS RELEASE WASHINGTON, D.C.

Wayne Maloney (202) 690-0498

APPLICATIONS BEING ACCEPTED FOR GUARANTEED RURAL RENTAL HOUSING PROGRAM FUNDS

     WASHINGTON, February 9, 2006--USDA Rural Development is accepting applications through the Rural Rental Housing Guaranteed loan program (Section 538). The program is provided to increase the supply of affordable rental housing through the use of loan guarantees, which are provided by Rural Development in partnership with private lenders and public agencies.

     "This program is an excellent way for eligible borrowers to develop new rental housing, or acquire and rehabilitate existing multi-family housing," said Rural Development Housing Administrator Russell Davis. "Starting this year, funds are also available to repair and rehabilitate housing complexes constructed under our multi-family (Section 515) housing program."

     To be eligible for funding under the program, the properties must have repair and rehabilitation costs totaling at least $6,500 per unit. Eligible uses for loan proceeds also include construction of new units, land improvements, construction of office and maintenance buildings, community and recreational facilities, parking, landscaping, fencing and appliance purchases. Eligible housing types include family, senior and farm labor housing properties. Occupants must be members of very low, low or moderate income households; or elderly, handicapped and disabled persons with incomes not in excess of 115 percent of the area median income.

     Eligible applicants for loan funds include U.S. citizens, aliens legally admitted for permanent residence, nonprofit organizations including local governments, community development groups and Indian tribes, or for-profit corporations. Rural areas with populations of up to 20,000 are eligible. Funding in the amount of $99 million has been allocated to provide guarantees. USDA Rural Development will accept responses until all funds are expended. A notice will be placed in the Federal Register when all funds are committed for FY 2006.

     Complete details appeared in the January 27th edition of the Federal Register. For more information, or to apply, call any USDA Rural Development state office or go to this web site: http://www.rurdev.usda.gov/rhs/mfh/brief_mfh_grrh.htm.

     USDA Rural Development's mission is to increase economic opportunity and improve the quality of life in rural communities. As a venture capital entity, Rural Development has invested over $63 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Over 1.1 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's 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

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