NEWS RELEASE WASHINGTON, D.C.

Contact: Vicki Ritterling (202) 690-0498

USDA RURAL DEVELOPMENT HOUSING VOUCHER PROGRAM HELPS RESIDENTS REMAIN IN APARTMENTS

     HINESVILLE, Georgia, April 6, 2006--Agriculture Under Secretary for Rural Development Thomas Dorr today introduced a new USDA voucher program by presenting 40 tenants of Wedgewood Apartments with short-term rental subsidies, roughly $240 per tenant per month, that will allow them to remain in their apartments despite a rent increase of about 45 percent.

     "USDA Rural Development is committed to providing affordable rental housing to rural residents here in Georgia and nationwide," Dorr said. "We are pleased that the voucher program is in place to help these families remain in their present apartments. Without this program, many of these families would be forced to move."

     Owners of complexes financed through Rural Development receive subsidized loans and agree to rent only to low income residents, either families or the elderly. The government restricts profits by the owner. When the mortgage is paid off, the owner has the right to raise rents to what the local economy can bear. Owners at Wedgewood Apartments prepaid their mortgage in late February, allowing them to increase rents.

     To qualify for vouchers, a families' income must be at or below 80 percent of the area median income. At Wedgewood, approximately 75 percent of the tenants are very low income, female heads of household with children.

     The Hinesville area, home of Fort Stewart and the 3rd Infantry Division, is experiencing a shortage of available housing as soldiers return from Iraq and troops from BRAC-affected bases arrive. With a shortage of affordable housing, residents who couldn't afford the rent increase would have a very difficult time finding another place to live.

     "This voucher program has helped us in our transition to market-rate housing, and for the families it gives them time to work through their situations," said Ed Feiler, owner of Wedgewood Apartments.

     "Mr. Feiler has been extremely helpful and very empathetic to the situation of his tenants," said Stone Workman, state director of USDA Rural Development in Georgia. "We are often partners with the private sector in ventures, and working together for the well being of rural residents is paramount. This voucher program is an example of outstanding teamwork."

     The USDA Voucher program was authorized by Congress as a demonstration program. The Notice of Funding Availability (NOFA) was published in the March 20, 2006, Federal Register. Vouchers totaling $15.840 million were made available to residents to cover the difference between the tenant's rent contribution and the new rental rate. Tenants may use the voucher at their current property or any other rental unit in the U.S. that passes Housing and Urban Development (HUD) housing quality standards, and where USDA vouchers are accepted.

     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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