West Sacramento, Calif. — In the quarter ending June 30, 2016, Rural Community Assistance Corporation (RCAC) closed 14 loans totaling more than $3 million to assist rural communities in California, Nevada, New Mexico and Montana with housing, water infrastructure and community development projects.
A $537,940 loan to the National Affordable Housing Network (NAHN) refinanced 19 finished lots (11 single-family and eight 4-unit condominium lots) in Whitehall, Montana. The single-family lots will be sold to families participating in the U.S. Department of Agriculture (USDA) Section 523 Mutual Self-Help Housing Program, in which nonprofit housing organizations like NAHN work with low-income borrowers who provide 65 percent of the construction labor to build their own and their neighbors’ homes. This “sweat equity,” combined with a USDA affordable mortgage makes homeownership affordable for low income families. The condominium project will include accessible units with supportive features for persons with special needs and seniors. Both projects feature solar layout and high performance energy features.
RCAC will also assist NAHN with construction loan management, homeownership training, construction management and grant management as a technical assistance provider in the self-help program. RCAC currently provides this assistance to more than 50 nonprofit organizations in its service region.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of June 30, 2016, RCAC closed 868 loans which totaled $458,118,852 and leveraged more than $1.798 billion for projects in rural communities. These loans supported 74,167 individual water and wastewater connections for rural citizens, 13,102 housing units; 10,276,017 feet of community facility space; and created or retained 16,442 jobs. RCAC currently has 244 loans under management, totaling more than $69.9 million. Additionally, RCAC manages 46 loans totaling more than $41.3 million on behalf of other lenders and investors.
Founded in 1978, RCAC provides training, technical and financial resources and advocacy so rural communities can achieve their goals and visions. RCAC serves rural communities in 13 western states and western Pacific islands. Services are available to communities with populations of fewer than 50,000, nonprofit groups, tribal organizations, farmworkers, colonias and other specific populations. RCAC staff provides direct services in collaboration with local and community partnerships in three program areas: affordable housing, environmental services and lending. RCAC provides financing, including small business loans, technical and economic development assistance to rural communities and nonprofit organizations in its service region. To find out more about RCAC’s Loan Fund products, go here.
RCAC Lending & Housing
916/447-9832 ext. 1003