Re-introduces Rural Rental Housing Act of 2006

Washington, DC (May 15, 2006) – Congressman Rubén Hinojosa (TX-15) has re-introduced the “Rural Rental Housing Act of 2006,” which aims to improve housing conditions for low-income residents in Rural communities.

The bill will create a $250 million fund administered by the U.S. Department of Agriculture (USDA).  The funds will be awarded to states as matching grants based on their share of Rural substandard rental units and of those living in poverty.  The funds will be used to acquire, rehabilitate and construct low-income Rural rental housing units.

“Twenty percent of our nations’ population lives in Rural communities, yet a majority of these families live in sub-standard housing conditions,” said Hinojosa.  “These communities simply do not have the resources – either economically or infrastructure – to address the problems of sub-standard housing.  Instead of investing in rural housing, the federal government continues slashing the very programs that address this problem.  The time to stem this tide is now.”

The USDA will award grants to public entities, Native American tribes, for-profit corporations, and private nonprofit corporations with a record of accomplishment in housing or community development.

The Act supplements the Section 515 Rural Rental Housing program, which is the primary source of federal funding for affordable rental housing units in Rural America.  Section 515, which is administered by the USDA’s Rural Housing Service, makes direct loans to non-profit and for-profit developers to build Rural rental housing for very low-income tenants.  Since 1994, appropriations for the program have declined by 73 percent, which has resulted in virtually no new units being built, and an inability to maintain standards at current units. 

“This program is not just simply another bureaucratic answer to a problem,” continued Hinojosa.  “It is flexible, fosters partnerships in the public and private sectors, leverages federal funding, and is controlled on the local level.  This effort must be collaborative if it is to be a success.  The Rural Rental Housing Act is a step in the right direction to guaranteeing safe, affordable and quality housing for Americans in Rural communities.”