USDA Rural Development Programs for Rural Communities…What do you need for Community? Business? Housing?

Community Programs - Rural Utilities Rural Utilities Programs are designed to create or improve telecommunications, water, sewer and solid waste for rural communities. Loans, grants and loan guarantees are available for public bodies, non-profit organizations and Federal recognized tribes.

Rural Utilities Water & Waste Disposal Program – direct loans and grants to public entities, recognized tribes & non-profit organizations to build, repair and improve public water systems and waste collection & treatment systems and other related costs in rural areas. Water & Waste Disposal Program – guaranteed loans are available for same purpose to Approved lenders

Rural Utilities cont’d Solid Waste Management – grants are available to non-profit organizations and public bodies to provide technical assistance and training to reduce pollution of water resources and improve management of solid waste facilities. Rural Broadband – direct loans & loan guarantees – to legally organized entities providing or proposing to provide broadband service in eligible rural areas.

Rural Utilities cont’d Distance Learning & Telemedicine – direct loans and grants to incorporated entities on a for-profit or non-for-profit basis that operate rural schools, libraries, health care clinics and other organizations that operation educational or health care facilities to purchase & install equipment & LAN.

Southeast WSC (Leon County)

Wickson Creek SUD (Brazos County)

“Lagoon” Sewer System (Nacogdoches County )

COMMUNITY FACILITIES PROGRAMS Has guaranteed loans & direct loans and grants. Eligible applicants are public bodies, non- profit organizations & recognized tribes. USDA approved lenders may apply for loan-guarantees for an eligible entity. The facility must provide essential community facilities for rural communities.

 Fire Protection: Buildings, Emergency Response Vehicles, Skid Units, Jaws of Life & other Fire Fighting Equipment  Law Enforcement: Buildings, Jails, Cars, Emergency Vehicles & other Equipment  Early Warning Equipment Loans & Grants for Community Facilities: Public Safety

Volunteer Fire Departments in action Leona and Pleasant Springs

Robertson County EMS

Calvert VFD Fire Station (Robertson County)

Fairchild VFD Fire Station (Fort Bend County)

Centerville VFD

USDA Rural Development

 City Hall  Community Center  Library  Day Care Community Facilities loans and grants for: Places to Meet

Rainbow Land Day Care (Matagorda County)

Public Library – Shelby County

Angelina College Campus – Houston County

 Dental Clinics  Hospitals  Assisted Living  Nursing Homes  Medical Clinics  Distance Learning & Telemedicine Grants Community Facilities loans and grants for: Health Care

USDA Rural Development

Single Family Housing Direct loans to very-low and low income families and individuals to buy, build repair or rehabilitate their permanent residence in rural areas (Section 502 direct). Guaranteed loans to low and moderate income families and individuals for a primary residence in rural areas – these loans are made by USDA approved lenders and guaranteed by USDA (Section 502 guaranteed).

Loans for Single Family Homes Affordable, Decent & Safe Housing In 2014 we financed over 6,700 Rural Housing loans in Texas! Direct Single Family Home Loans Guaranteed Single Family Home Loans

Single Family Housing Loan Program Purpose - Designed to provide safe & sanitary housing for very low and low-income clients for:  Existing homes  Inventory homes  New home construction

Single Family Housing Loan Borrower Eligibility  Steady & dependable income  Must occupy  Citizen or qualified alien  Legal capacity  Acceptable credit  Repayment capability

Single Family Housing Loan Property Eligibility  Rural location  Modest (size and value)  Decent, safe and sanitary  No negative environmental impact

Leon County.

Montgomery County

How RD can help: “Family of Four” lives here…

Their “Back Porch and Play Area”

Cardboard boxes cover holes in the floor

Old home hauled away…the lot cleaned up; new home brought in…and now the “Family” lives here!!!

Single Family Housing: Guaranteed Rural Housing Program

Guaranteed Rural Housing Loan Purpose: Designed to provide safe & sanitary housing for moderate-income clients through: Purchase Existing home or New home construction

Guaranteed Rural Housing Loan: Property Eligibility  Rural location  Modest (size and value)  Decent, safe and sanitary  No negative environmental impact  No Loan $$$ Limit

Home Repairs & Improvements Programs

Repair loans to very-low income families and individuals in rural areas who currently own their home to make repairs and remove health and safety hazards to their primary residence (Section 504) Repair grants to very-low income elderly families or individuals (62 years of age or older) to remove health & safety hazards to their primary residence (Section 504).

Key Features of the Home Repair Loan:  1% Interest Rate  Maximum $20,000  Up To 20 years Amortization  Home Serves As Collateral  Zero Down

Key Features of the Home Repair Grant:  Maximum $7,500  Age 62 or older  To remove health & safety hazards to their primary residence. 

Multi-Family Housing Loans

Multi-Family Housing Multi-Family Rental Housing – direct loans made to individuals and non-profit organizations to construct and/or rehabilitate existing multi-family rental units in rural areas (Section 515)

Multi-Family Housing cont’d Multi-Family Rental Housing – guaranteed loans are made to USDA approved lenders for individuals, partnerships, limited liability companies, trusts, state & local agencies and recognized tribes for new construction and rehabilitation of multi- family rental housing in rural areas (Section 538).

White Oak Apartments (Montgomery County)

Madisonville Manor (Madison County)

Crockett Manor Apartments (Houston County)

BUSINESS, ENERGY & COOPERATIVES Rural Development Business & Cooperative Programs are used to create jobs, facilitate the development of rural business, improve economic development, promote renewable energy and increase the energy efficiency of rural businesses. These goals are accomplished with the use of guaranteed loans, direct loans and grants.

Business Guaranteed Loans Business and Industry loan guarantees are made by USDA approved lenders on behalf of their qualified rural business borrowers. Loans can be used by most legal business purposes except for production agriculture and includes acquisition, start-up and expansion of business that create jobs in areas with populations of 50,000 or less. Lender’s and borrower’s negotiate terms and the loan is guaranteed by USDA.

Business Loans & Grants Rural Business Development Grant – made to public bodies, private non-profits and recognized tribes – used to finance and facilitate the development of small and emerging private business enterprises. Rural Economic Development Loans & Grants – made to existing electric & telephone utilities borrowers to finance business facilities and community development projects in rural areas.

Direct Loans & Grants Cont’d Intermediary Relending Program loans – made to public bodies, non-profits, recognized tribes & cooperatives to finance business facilities and community development projects in rural areas. Rural Cooperative Development Program grants – made to non-profit corporations & institutions of higher education to establish and operate centers for cooperative development to improve the economic condition in rural areas and to improve operations of existing coops.

Value Added Agricultural Product Market Development Program grant – made to independent producers, farmer and rancher cooperatives, and majority controlled producer- based business ventures to assist independent agricultural producers to enter into activities that add value to their commodities. Small Socially Disadvantaged Producer Program grant – made to coops or associations to provide technical assistance to small, minority owned producers.

Restaurant & Truck Stop (Walker County)

Fertilizer Plant (Jefferson County)

Hospital

Rural Energy for America Programs (REAP) grants – made to agricultural producers & rural small businesses to finance the purchase of renewable energy systems or to make energy efficiency improvements.

Received a “Renewable Energy Systems and Energy Efficiency Improvements Grant” to develop a renewable energy facility with six (6) 1.5 mega-watt wind generator turbines. Projected to produce over 35 million mega-watt hours per year. High Plains Wind Power

Improved Aeration System - Catfish Farm

Solar Panels for Poultry House

Side Walls for a Poultry House

Energy Efficiency Project for: Wholesale and Retail Stores & Businesses Lighting Refrigeration Heating, Ventilation and Air Conditioning (HVAC) Windows Source: Heschong Mahone Group

Energy Efficiency Project for: Irrigation Installing an electric motor to replace an inefficient natural gas power unit. This new unit provided 76.65% in energy savings.

Renewable Energy Project: On-Grid Farm Small Wind System For Utility bill reduction 10 kw Wind Turbine 23 ft rotor, 100 ft tower Generates ~21,000 kwh/year, utility bill savings ~$2,800/year Installed in early 1980s; Maintenance costs $50/year One lightning strike, damage was covered by farm insurance.

Renewable Energy Project: Large Wind Individual wind turbine larger than 100kW. –Community Scale (1 – 5MW) –Wind Farm (20MW and up)

Solar Power for Stock Tanks Solar Powered Pumps Renewable Energy System for: Livestock Producers

Summary We talked about: Community Programs (Public Utilities) Community Programs (Facility, Public Safety, Health Care) Rural Housing Programs Home Repair Programs Business Programs Our contact information:

CONTACT: USDA Rural Development 3833 S. Texas Ave. Suite 117 Bryan, TX X 4