Thursday, Dec 1 2011 5:27PM

Rural housing assistance programs may be threatened by recent federal budget recommendations and legislative proposals, according to an article in Tax Credit Advisor magazine.

Financing organization Lancaster Pollard's senior vice president Ginger McGuire indicated that 18 percent of the nation's population living in rural areas may see cuts in federal funding for affordable housing programs. The need for rural programs, she notes, is often overlooked, despite the fact rural residents typically have lower average incomes and are in greater need of housing assistance and related programs, such as housing counseling.

In particular, McGuire draws attention to the major role the U.S. Department of Agriculture (USDA) plays, serving as the largest lender in rural America and financing more than 440,000 apartment units. USDA is responsible for the Section 538 program, which has guaranteed more than 699 rural housing projects since it began in 1996.

Despite its success, however, the program has been the target of major budget cuts. It received $130 million in funding for 2010, about $30 million in 2011 and may not be funded in 2012. McGuire points to the fact that the 2011 funding was directed entirely to applications in the pipeline, which could be another sign the program, and others like it, may not receive funding needed to support rural communities.

For further reference, check out this source: Multi-Housing News