Washington, DC (March 20, 2006) – Congressman Rubén Hinojosa (TX-15) is leading an effort to preserve funding for the Housing Assistance Council (HAC) program.  In a letter to Reps. Joe Knollenberg and John Olver, chairman and ranking member, respectively of the House Appropriations Subcommittee on Transportation, Treasury, HUD, Judiciary, District of Columbia and Independent Agencies, Hinojosa and 21 other Members of Congress are urging the subcommittee fund the HAC program at a minimum of $3.5 million for FY07.

“The Housing Assistance Council plays a critical role in our communities overall well-being and economic development,” said Hinojosa.  “Funding for the program must be maintained if HAC is to continue improving and increasing affordable housing and community development in Rural America.”

The President’s proposed FY07 budget eliminates funding for HAC, the only national assistance organization devoted solely to rural housing and community development.

Created in 1971, HAC offers seed-money loans, grants, training, technical aid, applied research, and information to local community groups that are building decent, safe, and affordable housing in underserved rural areas.  Much of HAC’s work has focused on homeownership for rural families, particularly using the sweat equity, self-help approach.  It has provided more than $192 million in loans and grants to community and faith-based groups in 49 states to help build almost 60,000 homes.  This support has leveraged over $1.6 billion in other funds.

HAC works throughout the rural and non-metropolitan U.S., but also maintains a special focus on five very high-needs areas:  Appalachia, the Lower Mississippi Delta and Southeast, the Southwest border region, Native American areas, and migrant farmworker regions.  These are areas where poverty rates and housing needs are very high, development capacity is low, and conventional funding tools do not always work.

“Recently, I had the opportunity to tour a housing project in the district that receives funds directly from HAC,” said Hinojosa.  “I saw first hand how low-income families work side by side with other volunteers and employees to fulfill part of the American dream – building their own home.  If HAC does not receive this minimum amount of funding, affordable and quality housing will simply not be available for hundreds of thousands of hard-working Americans.