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RCAC lends more than $8 million to rural projects

January 24, 2011

West Sacramento, Calif. — RCAC’s Loan Fund closed six housing loans and one environmental loan in its first quarter of fiscal year 2011, lending more than $8 million to rural, disadvantaged communities in the West for much-needed projects. The housing loans included four for construction and two for acquisition in the states of Arizona, California and Utah. The RCAC housing loans will result in 156 multifamily units and five of the six are for projects that will incorporate green building design.

“Despite the downturn in the economy and housing market, there is still a demand for quality, affordable housing for low- and very-low income households in rural communities,” said Michael Carroll, RCAC Loan Fund director.

The RCAC environmental loan that closed this quarter was a $40,000 loan to the Greater Bar Water District (GBWD) in Washington state that will pay for a portion of the cost of a Comprehensive Water System Plan as part of requirements to help GBWD access permanent loan/grant funding from Washington’s Drinking Water State Revolving Fund for GBWD’s water system improvement and expansion project. GBWD intends to fully rehabilitate its waters system; adding reservoir capability to provide fire flow storage; drilling a new well; adding new pumps and controls; adding distribution lines; adding water meters to all connections and implementing a new water treatment system. GBWD has contracted with an engineering firm to draft a Comprehensive Water System Plan to upgrade and expand the water system so that it provides a long-term, sustainable solution to the water needs of its service area and meets all code requirements.

RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of December 31, 2010, RCAC closed 591 loans which totaled $308,965,289 and leveraged more than $1.26 billion for projects in rural communities. These loans supported 46,739 individual water and wastewater connections for rural citizens, 11,627 housing units and 1,149,471 feet of community facility space. These loans created or retained 13,297 jobs. RCAC currently is managing 136 loans, totaling more than $47 million. Additionally, RCAC manages 45 loans totaling more than $50.5 million on behalf of other lenders and investors.

Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities, agricultural workers and community-based organizations in 13 Western states. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing. To find out more about RCAC, visit www.rcac.org.

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