Veneman Highlights USDA Homeownership Programs
Announces $12.6 Million in Housing and Business Investments

Transcript

   “USDA is reinforcing our commitment to work with our housing partners through the Mutual Self-Help Housing Program to expand homeownership opportunities for rural individuals and families,” said Veneman. “The hard work and great partnerships between USDA and the affordable housing developers show the commitment to the President’s homeownership goals.”

   The President’s housing agenda includes providing down payments assistance through the American Dream Downpayment Initiative, increasing the supply of affordable homes through the Single-Family Affordable Housing Tax Credit, making a difference in the lives of low-income homebuyers with the Zero-Downpayment Initiative; open government programs to faith-based and other grassroots organizations and increasing home-buying education and counseling. President Bush also issued American’s Homeownership Challenge to the real estate and mortgage finance industries to encourage them to join the effort to close the gap that exists between the homeownership rates of minorities and non-minorities. USDA Rural Development programs are an important part of this initiative, which has invested over $10.2 billion in the last three years to help 138,000 families own their own home.

   The Mutual Self-Help Housing Program is a public/private partnership. USDA provides a technical assistance grant to self-help grantees, who in turn acquire land in rural areas and supervise families as they construct their homes. The families work on-site for at least 35 hours per week, which in turn gives the family “sweat equity” in their homes. The new homes raise property values, increase economic development opportunities and provide stability to the community. Since the inception of the Mutual Self-Help Housing Program in California in 1966, USDA has invested over $133 million in affordable housing for thousands of families in rural areas of California. Veneman’s visit today included an opportunity to meet with two families, Aidor and Nangkeo Saesee and Olga Maldonado, who received USDA self-help loans to purchase their homes.

   Veneman said that USDA is working to double the number of individuals and families in its self-help program by 2010, with a special emphasis on minority ownership. While 50 percent of current participants are minorities, USDA is pledging to increase participants by 10 percent to help meet the President’s goal. In 2003, California provided over $46.9 million in self-help housing loans and grants, assisting 342 families with homeownership, with over 83 percent being minority families.

   California has been leading the nation in providing self-help homeownership opportunities for its residents. According to the 2000 Census, California’s rural population of 1,881,985 was 27.4 percent minority. California housing loans to minorities in 2004 are projected to be at 85 percent.

   While in Sacramento, Veneman announced over $12.6 million in additional housing and economic development loans and grant investments to assist rural California families increase their economic opportunities and improve their quality of life. Investments announced include:

Woodset Partners, LLC, -- $7.188 million business loan guarantee for a senior care facility in Madera;
Mercy Housing Corporation (a faith-based organization)-- $2.790 million self-help technical assistance grant;
Joyce Boehm (Donner Trail Manor Apartments). -- $898,986 rural rental housing loan to preserve current rental housing units in Wheatland;
Imperial Valley Housing Authority. -- $716,279 farm labor housing loan for a new 40-unit Farm Labor Housing rental community in El Centro;
Self-Help Enterprises -- $500,000 farm labor housing loan for a new 28-unit Farm Labor Housing rental community in Planada;
Self-Help Home Improvement Project -- $315,000 self-help technical assistance grant; and
Burbank Housing Development Corporation -- $246,000 self-help technical assistance grant.

   As part of the Secretary’s Leaders of Tomorrow Initiative, members from Willow Oak 4-H Club and Modesto FFA Chapter are helping with the homeownership event. The purpose of the Initiative is to inspire the next generation of leaders by encouraging community involvement, careers in public service, and learning about agriculture, one of the most dynamic sectors of our economy.

   USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. 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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