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RCAC Loan Fund lends more than $7.7 million in rural communities
November 2, 2011
Contact: Sharon Wills
RCAC PR Communications Coordinator
916/447-9832 ext. 1005
swills@rcac.org
West Sacramento, Calif. — In its fourth quarter ending September 30, RCAC lent more than $7.7 million to rural communities in California, Idaho, New Mexico, Utah and Washington to finance important community projects. All told, in Fiscal Year 2011 RCAC closed 39 loans which totaled $22,961,392 in 10 states; and supported 4,942 individual water and wastewater connections for rural residents; 460 housing units; 50,466 feet of community facility space; and created or retained 235 jobs.
In its fourth quarter, RCAC made three environmental infrastructure and two affordable housing loans; financed one community facility; and made an operating loan to a nonprofit housing organization.
Many small, rural communities lack the resources necessary to pay engineering and legal costs required to meet closing conditions for federal loans and grants to improve their systems. RCAC’s lending products enable these communities to access federal and state funds for system improvements. For example, RCAC’s fourth quarter loans to the Coyote Creek Mutual Domestic Water Users Association and the Bluewater Acres Domestic Water User’s Association covered costs of audit, environmental and preliminary engineering reports needed to access U.S. Department of Agriculture (USDA) funding; and its loan to the Mission Creek Water Association finances water system upgrades needed to maintain water quality compliance.
RCAC also continues to make much-needed loans to nonprofit affordable housing developers, despite the poor housing market. In the fourth quarter, RCAC made a loan to the Casa del Sol Mobile Home Corporation to finance acquisition of 29 manufactured housing units to provide quality rental housing to low income families; and its loan to the Lower Community Action Council provided funds to acquire nine finished for self-help homebuilders.
RCAC also provided a revolving line of credit to the Community Housing Opportunities Corporation; and a loan to finance a charter school facility for the Maria Montessori Academy.
In partnership with Loan Fund investors and rural communities, RCAC provides critical capital to move community sustainability efforts forward. “We could not do what we do without the support of our investors,” said Michael Carroll, RCAC Loan Fund director. “Their investments are much appreciated.”
RCAC FY11 new and renewing Loan Fund investors included Community Economics, the Sacramento Housing Alliance, JP Morgan Chase, the Dominican Sisters, USDA and the U.S. Department of Treasury, including a new investment from the Treasury’s Small Business Lending Fund. As a result of this new funding, RCAC initiated a small business lending pilot for California rural communities in October.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of September 30, 2011, RCAC closed 622 loans which totaled $323,615,962 and leveraged more than $1.32 billion for projects in rural communities. These loans supported 51,617 individual water and wastewater connections for rural citizens, 11,838 housing units; 1,199,937 feet of community facility space; and created or retained 13,531 jobs. RCAC currently has 137 loans under management, totaling more than $50.5 million. Additionally, RCAC manages 41 loans totaling more than $48 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's Loan Fund products, visit www.rcac.org/doc.aspx?82.
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