Friday, May 24 2013 3:02PM
The USDA will extend loans to lenders for the construction of new rural rental units.
The U.S. Department of Agriculture (USDA) is calling on lenders to submit applications for financing to be put toward the construction or rehabilitation of affordable rural rental housing.
Under the agency's Guaranteed Rural Rental Housing Program, the USDA will extend up to $150 million for the construction, acquisition and rehabilitation of affordable rural rental housing.
Agriculture Secretary Tom Vilsack said that rural rental and housing programs are crucial in both helping low-income Americans avoid poverty and find affordable homes, while also creating construction jobs in these areas to improve economic community development.
"USDA's housing programs are an important part of the Obama Administration's policies for strengthening the rural economy," said Vilsack. "They make a real difference in the lives of thousands of rural Americans nationwide."
Low-income rental housing may become more important and necessary in rural locations as rental rates become more expensive.
A recent report from real estate website Trulia found that homeownership remains more affordable than renting in all 100 top markets in the country. Further, separate studies show that many low-income renters spend more than 30 percent of their income on housing needs, which makes it more difficult to cover their other costs.
For more information, check out this resource: The U.S. Department of Agriculture