West Sacramento, Calif. — In the quarter ending March 31, 2016, Rural Community Assistance Corporation (RCAC) closed 16 loans and loan guarantees totaling more than $28 million to assist rural communities in Alaska, California, Hawaii and Washington with housing, water infrastructure and community development projects.
RCAC’s Development Solutions worked together with RCAC’s Loan Fund to close construction financing for Kunia Village, located in rural Honolulu County on Oahu. This project came about when Del Monte closed its pineapple farming operations, putting 600 people at risk of losing their homes. It also represents RCAC’s first development partnership with Hawaii Agricultural Research Center, which acquired the housing from Del Monte. RCAC provided a construction loan guarantee for a $20,935,000 loan from Wells Fargo Bank and a $6 million construction loan for the project, which will renovate 45 existing rental units and demolish another 19 before constructing 37 new units for farmworker families, many of whom have extremely low median family incomes. The project will include extensive site work with upgraded roads, new water and sewer lines and a new pumping station to improve the low water flow on the site. The total project cost is more than $35 million.
Development Solutions and Loan Fund also collaborated to assist California Human Development Corporation with technical assistance and a $261,800 predevelopment loan for 30 farmworker homes in Santa Rosa, California. Ortiz Plaza meets RCAC green lending criteria and includes solar orientation and recycled building materials. The project is a direct response to critical and largely unmet affordable housing needs in this agricultural area, where there are low vacancy rates and long waiting lists for housing but no designated farmworker housing projects to date.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of March 31, 2016, RCAC closed 854 loans which totaled $454,865,763 and leveraged more than $1.682 billion for projects in rural communities. These loans supported 73,985 individual water and wastewater connections for rural citizens, 13,050 housing units; 10,271,817 feet of community facility space; and created or retained 16,377 jobs. RCAC currently has 238 loans under management, totaling more than $69.1 million. Additionally, RCAC manages 45 loans totaling more than $40.9 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, other nonprofit groups, tribal organizations, farmworkers, colonias and other specific populations. RCAC’s staff provides direct services in collaboration with local and community partnerships in three program areas: affordable housing, environmental services, and lending. RCAC provides loans, including small business loans, technical and economic development assistance to rural communities and nonprofit organizations in its service region. Learn more about RCAC’s Loan Fund products here.
Contact:
Michael Carroll
RCAC Lending & Housing
(916) 447-9832 ext. 1003
mcarroll@rcac.org
