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Self Help Builder News March 2012 Volume 5 Issue #1 >
Funding status of programs related to the USDA Mutual Self-Help Housing Program
Listed here are several programs, their appropriation levels in recent years and for the USDA programs the current obligations through January 31, 2012. For a more completed listing of housing programs and appropriation levels, please visit the Housing Assistance Council website, www.ruralhome.org.
Current 502 and 523 obligations through the end of February
As of the end of February 2012, only 141 loans totaling $21,545,281 had been obligated. Processing is down due to a loss of RD staff with the December retirements and other lending priorities of the agency. The National Office intends to fund the self-help loans from the National Office reserve after the state allocations are exhausted. Self-help loans will be one of several priorities for funding from the reserve. Even with the slow start, funding will be tight since most states will have used their allocations by the end of May and pooling may occur earlier this year.
USDA RD is still monitoring the performance of each state in meeting the requirement that at least 30 percent of the funds are serving very low-income (VLI) borrowers (VLI is 50% or less of the Adjusted Median Income). The National Rural Self-Help Housing Association and the T&MA Contractors had conversations with the National Office RD staff and were reassured that if a state fell below the requirement, the grantee’s self-help loans would not be held up if the program requirement of at least 40 percent for the grant was being met.
In mid-February, the Administrator directed refunding of operating grantees at or below their current funding levels pending the publication of the fiscal year notice. By the end of February, four grants were renewed in our region for a total of $6,313,809 in 523 funding which will sponsor the construction of 275 homes.