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Goal 1 - GOOD JOBS AND DIVERSE MARKETS.
Rural Development will improve the quality of life in rural America by encouraging the establishment and growth of rural businesses and cooperatives.
Rural America is currently experiencing an economic and population revival, after the declines of the 1980s. Yet rural America continues to face significant challenges. Income and earnings from nonfarm jobs in rural areas continue to lag those in urban areas. Structural changes in production agriculture have been, and will continue to be, significant. There is a strong continuing need for more diversified sources of income for farm and nonfarm workers in rural areas.
The need is not just for jobs, but for jobs that pay a livable wage. Less than one in four rural jobs are in farm or farm-related industries. During the 1990s, the rural-urban gap in real per capita annual income remained approximately $6,000 or greater, while rural nonfarm jobs in 1994 paid over $8,000 per job less than urban jobs. The rural-urban gap in real earnings per nonfarm job is wider now than it was in either 1980 or 1990. There is also disparity in the poverty rates between rural and urban areas. In 1994, 16 percent of rural residents were in poverty compared to 14.2 percent of urban residents.
Objective 1.1
Increase the availability and quality of jobs in rural areas.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Build leveraging partnerships to expand total resources going to rural areas by leveraging program monies with funds from State, local and private sources.
Work with local communities to ensure funds are directed to projects with the highest job creation potential.
Coordinate with the Foreign Agricultural Service to promote product development in rural areas which have a foreign market.
Involve 1890 and 1862 land-grant universities in providing technical assistance to minority-owned businesses and entrepreneurs in training, credit acquisition assistance, and business plan development.
Performance Measures
Create or retain 35,000 jobs through loans, grants, and technical assistance to rural businesses.
Generate $2.0 billion of income in the local communities through the investment of funds from the business programs.
Objective 1.2
Encourage and promote the use of marketing networks and cooperative partnerships to increase and expand business outlets.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Coordinate efforts with the Foreign Agricultural Service to utilize cooperatives to promote, in rural areas, the development of products which have a foreign market.
Partner with public, non-profit, and educational institutions to heighten awareness and understanding of cooperatives and marketing opportunities in underserved rural areas.
Provide field level training and technical assistance to cooperatives and developing cooperative groups.
Performance Measures
At least 100 cooperative groups indicate technical assistance and educational services provided by RBS fulfills their requirements.
Objective 1.3
Direct Rural Development program resources to those rural communities, and customers with the greatest need.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Establish an Outreach Program and Outreach Liaison Position.
Implement the Rural Community Advancement Program (RCAP).
Improve accessibility of Rural Development programs for Native Americans.
Utilize Geographic Information System to improve targeting of funds.
Performance Measures
Invest 20 percent of Rural Business Enterprise Grant (RBEG) funds, and 21 percent of Intermediary Relending Program (IRP) funds in EZ/EC communities.
Invest 10 percent of B&I funds, 20 percent of IRP funds, 20 percent of Rural Business Enterprise Grant funds, and 2 percent of Rural Economic Development Loan and Grant (REDLGP) Program funds in other Presidential and Departmental Initiatives (Pacific Northwest, REAP Zones, Champion Communities, etc.).
Provide technical assistance to cooperatives in 80 impoverished or economically depressed counties.
Objective 1.4
Manage the loan portfolio in a manner that is efficient and effective.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Enhance Rural Community Facilities Tracking System (RCFTS) to monitor and assist in the management of new programs, such as the Rural Economic Development (zero interest) Loan and Grant Programs.
Develop software capable of monitoring and assisting in determining benefits of the secondary market sale of third-party Intermediary Relending Program (IRP) recipient loans.
Performance Measures
91 percent currency rate for guaranteed Business and Industry (B & I) loans.
100 percent currency rate for Rural Economic Development loans.
100 percent currency rate of IRP loans.
Goal 2 - QUALITY HOUSING AND MODERN COMMUNITY FACILITIES.
Rural Development will improve the quality of life of rural residents by providing access to technical assistance, capital and credit for quality housing and modern, essential community facilities.
Vibrant communities are critical to the success of rural America. One of the key components of a healthy community is decent, safe, sanitary and affordable housing.
In 1989, one in five rural households paid more than 30 percent of its income for housing costs. 1.6 million rural households live in substandard housing. Despite improvements in housing quality, especially in the number of rural units with complete plumbing facilities, there are about 3 million units whose occupants are cost-burdened or which are physically substandard.
Another fundamental foundation for strong rural communities is the availability of community facilities such as fire stations, health care clinics, and child care facilities. These facilities often help the economic development and provide the bedrock and the sense of identity of the community.
Objective 2.1
Improve the quality of life for the residents of rural communities by providing access to decent, safe, affordable housing.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Build leveraging partnerships to expand resources going into rural areas.
Direct resources to the neediest families and communities.
Work with rural communities to ensure housing funds are wisely invested.
Expand self-help housing to all 50 States.
Provide leadership for the President’s Homeownership Initiative in rural areas.
Performance Measures
Provide 75,000 rural households with improved or more suitable housing, through home ownership programs.
Provide 100 communities with improved rental housing.
Relieve 4,000 rural households in Multi-Family Housing (MFH) projects of rent overburden.
Create or retain 107,000 jobs through the Single Family Housing (SFH) program.
Improve 41,000 existing single-family homes.
Add 34,000 new single-family homes to the tax base of local communities.
Generate $9.7 billion of income in the local communities through program activity.
Provide 7,900 rural households with improved or more suitable housing through rental housing programs.
Objective 2.2
Improve the quality of life in rural America by providing essential community facilities.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Build leveraging partnerships to expand resources going to rural areas.
Direct resources to the neediest projects and communities.
Work with local communities to ensure funds are wisely invested.
Support Welfare Reform by promoting development of day-care facilities.
Performance Measures
Participate with 419 funding partners in financing community facilities.
Provide 15,000 child care days as a result of RHS/LISC Child Care Initiative.
Assist 500 communities with new or improved essential community facilities.
Provide 28 new day care projects providing 70,000 child care days.
Provide new or improved essential community facilities for 15 million people.
Reduce patient travel time and distances to health care facilities in 21 communities.
Shorten fire/rescue emergency response times in 35 communities.
Create or retain 24,500 jobs in community facilities projects.
Objective 2.3
Direct Rural Development program resources to those rural communities and customers with the greatest need.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Establish an Outreach Program and Outreach Liaison Position to improve service to underserved and under represented communities.
Improve accessibility of Rural Development programs for Native Americans.
Utilize Geographic Information System to improve targeting of funds.
Performance Measures
Invest 30 percent of SFH guaranteed funds in areas where the average median income is less than the States’ non-metro median income.
Invest 5 percent of MFH funds in targeted areas.
Invest 3.5 percent of CF direct and 1.5 percent of CF guaranteed in EZ/EC communities
Objective 2.4
Maximize the leveraging of loan funds to increase the number of rural residents assisted by Rural Development programs.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Develop joint funding agreements with partners.
Performance Measures
Assist 2,750 families to achieve home ownership by using leveraged funds.
Participate with 750 funding partners in financing low-income housing.
Assist in the development of 313 community facilities projects by using leveraged funds.
Objective 2.5
Manage the loan portfolio in a manner that is efficient and effective.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Improve portfolio and debt management by implementing the Dedicated Loan Origination and Servicing (DLOS) system.
Reinvent the Multi-Family Housing (MFH) Program, including completion of automation projects to improve program management.
Performance Measures
98 percent currency rate for Community Facility (CF) borrowers.
97 percent currency rate for Multi-Family Housing (MFH) borrowers.
90 percent currency rate for Single Family Housing (SFH) borrowers.
Reduce paperwork burden in Multi-Family Housing (MFH) by 25 percent.
Graduate 9,860 Single Family Housing (SFH) borrowers to conventional credit.
Graduate 75 Community Facility (CF) borrowers to conventional credit.
Goal 3 - MODERN AFFORDABLE UTILITIES.
Rural Development will improve the quality of life of rural residents by promoting and providing access to capital and credit for the development and delivery of modern, affordable utility services.
Access to safe drinking water and modern, affordable utilities is critical if a community is to prosper. An estimated 2.5 million rural Americans have a critical need for safe, dependable drinking water, including approximately 1 million residents who do not have water piped into their homes.
The telecommunications program provides capital, establishes telecommunications standards, and provides policy guidance for rural telecommunications in the Administration’s National Information Infrastructure Initiative. The Information Superhighway can provide rural residents access to libraries, training centers, vocational schools, and other institutions located in metropolitan areas and support rural businesses. It also provides improved health care through linkage with other rural health care providers and urban medical centers for clinical interactive video consultation, distance training of rural health care providers, and access to medical expertise and library resources.
As part of the restructuring of the electric utility industry, Rural Development is ensuring the continued availability of reliable, high-quality electric service at a reasonable cost to rural consumers. Many rural electric and telecommunications systems are aging and the obsolete infrastructure must be replaced and improved.
Objective 3.1
Improve the quality of life in rural America by providing technical assistance and financing for modern, affordable water and waste water services in rural communities.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Continue to build leveraging partnerships to expand resources going to rural areas.
Direct resources to the neediest projects and communities.
Work with local communities to ensure funds are wisely invested.
Achieve the goals of Water 2000 by bringing safe, clear drinking water to every rural household.
Performance Measures
Provide central water and waste disposal service to 277,000 rural residents who previously did not have service.
Provide 1.7 million people with safe, affordable drinking water.
Provide quality drinking water through the development or expansion of 722 rural water systems.
Provide 648,000 people with improved, safe, affordable waste disposal service.
Invest $25 million of W&W funds in EZ/EC communities.
Objective 3.2
Improve the quality of life in rural America by providing technical assistance and financing for modern, affordable telecommunications services, including distance learning and telemedicine facilities, in rural communities.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Continue to build leveraging partnerships to expand resources going to rural areas.
Where applicable, direct resources to the neediest projects and communities.
Work with borrowers and grantees to ensure funds are wisely invested.
Implement the President’s National Information Infrastructure Initiative thereby increasing educational and health care levels in rural areas.
Performance Measures
Connect 250,000 new telecommunications subscribers.
Provide 1.8 million residents and businesses with improved telecommunication service.
Provide 46 schools with transmission facilities for distance learning applications.
Provide 2.3 million rural residents and businesses with education or training experiences through distance learning facilities.
Provide distance learning facilities to 1,095 schools.
Provide telemedicine facilities to 1,819 health care providers.
Objective 3.3
Improve the quality of life in rural America by providing technical assistance and financing for modern, affordable electric service to rural communities.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Continue to build leveraging partnerships to expand resources going to rural areas.
Where applicable, direct resources to the neediest projects and communities.
Work with borrowers to ensure funds are wisely invested.
Performance Measures
Upgrade 110 rural electric systems.
Benefit 1.6 million residents with improved electrical systems.
Generate $7.5 billion of income in the local communities through the Electric, Telecommunications, and Water & Waste (W & W) programs.
Generate over 26,000 jobs as a result of electric facilities constructed with RUS funds.
Objective 3.4
Where applicable, direct Rural Development program resources to those rural communities and customers with the greatest need.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Establish an Outreach Program and Outreach Liaison Position.
Implement the Rural Community Advancement Program (RCAP).
Improve accessibility of Rural Development programs for Native Americans.
Achieve the goals of Water 2000.
Performance Measures
Provide 56 new or improved health care facilities in medically underserved areas.
Provide financial assistance for 216 water and waste systems in the 540 persistent-poverty counties.
Provide financial assistance for 183 water and waste systems in the 700 counties with persistently declining populations.
Provide financial assistance for 45 electric systems in the 540 persistent poverty counties.
Provide financial assistance for 80 electric systems in the 700 counties with persistently declining populations.
Objective 3.5
Maximize the leveraging of loan funds to increase the number of rural residents assisted by Rural Development programs.
Time Frame for Completion
Ongoing.Strategies for Achieving the Objective
Where possible, increase the leveraging of RUS funds with borrowers and supplemental lenders.
Performance Measures
Leverage $6 of private funds in rural telecommunications infrastructure for every $1 of RUS telecommunications program loan advances.
Leverage $2.75 of private funds in rural electric infrastructure for every $1 of RUS electric program loan advances.
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