RCAC Loan Fund lends more than $5.8 million to rural communities
West Sacramento, Calif. — In the quarter ending September 30, 2015, Rural Community Assistance Corporation (RCAC) closed 24 loans totaling more than $5.8 million to assist rural communities in California, Oregon, Utah and Washington with housing, water infrastructure and community development projects.
A $2.4 million loan will make it possible for a rural California Mutual Self-Help program to develop land to build 24 single family homes. RCAC initially approved the loan in January 2015, but the project was put on hold while the developers acquired various construction approvals. Meanwhile construction costs decreased, and the developers increased their own contributions, which made for a favorable and cost-efficient project.
A $35,000 loan went to the City of Idanha in Oregon for urgent repairs to its rural water system. In November 2013, the Oregon Department of Health noted six significant deficiencies (but no violations) to Idanha’s water system. The total estimated repair, including a new reservoir, will cost more than $1.8 million. RCAC is the sole financing source, and the current loan will cover the emergency repair phase.
RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of September 30, 2015, RCAC closed 811 loans which totaled $439,538,396 and leveraged more than $1.6 billion for projects in rural communities. These loans supported 72,555 individual water and wastewater connections for rural citizens, 12,918 housing units; 6,828,159 feet of community facility space; and created or retained 16,107 jobs. RCAC currently has 211 loans under management, totaling more than $63.2 million. Additionally, RCAC manages 44 loans totaling more than $40.6 million on behalf of other lenders and investors.
In FY15, RCAC closed 72 loans which totaled $29,495,843 in 10 states. These loans supported 7,907 individual water and wastewater connections for rural citizens; 303 housing units; 179,807 feet of community facility space; and created or retained 1,360 jobs.
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 certain 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 staff provides direct services in collaboration with local and community partnerships in three program areas: affordable housing, environmental services and lending. To find out more about RCAC’s Loan Fund products, visit www.rcac.org/programs-services/#section-0.