West Sacramento, Calif. — In the quarter ending March 31, 2015, Rural Community Assistance Corporation (RCAC) closed 14 loans totaling more than $9.79 million to assist rural communities in California, Hawaii, Idaho and Washington for community development projects.
Against the backdrop of California’s deepening drought, RCAC funded several household water wells and more are expected in the summer months. Among the loans was one for a couple living near Corning, Calif. This loan recipient had severe hardships, including the wife’s diagnosis of stage 4 cancer and later being laid off from her
job, leading to reduced income and falling delinquent on their credit obligations. In October, they noticed problems with water flow from their well and later learned that the bladder in their pressure tank was failing and would soon completely quit functioning. In providing the couple with a $710 loan, RCAC helped ensure that their water well system would continue to serve as a reliable source of clean drinking water.
This quarter, too, RCAC closed several loans to ensure affordable housing for rural residents. One of those loans was to Housing Hope (HH) of Everett, Wash., which requested acquisition financing for 14 finished lots in nearby Arlington. The $1,245,000 bridge loan will go toward acquisition financing for 14 finished lots in Arlington, Wash., which will be sold to low-income buyers wishing to construct their homes using the USDA self-help housing program. Housing Hope has, since its founding in 1987, consistently offered this vulnerable population safe, secure, and affordable housing assistance and human services, including employment preparation and life skills training; this most recent RCAC loan helps to ensure Housing Hope’s ongoing and critical service.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of March 31, 2015, RCAC closed 773 loans which totaled $425,345,916 and leveraged more than $1.57 billion for projects in rural communities. These loans supported 69,714 individual water and wastewater connections for rural citizens, 12,747 housing units; 6,771,891 feet of community facility space; and created or retained 15,847 jobs. RCAC currently has 185 loans under management, totaling more than $63.4 million. Additionally, RCAC manages 44 loans totaling more than $40.5 million on behalf of other lenders and investors.
In FY14, RCAC closed 36 loans which totaled $12,765,499 in 9 states. These loans supported 1,989 individual water and wastewater connections for rural citizens, 300 housing units; 3,620,027 feet of community facility space; and created or retained 273 jobs.
Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities and community-based organizations in 13 western states and other Pacific Islands. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing.