VENEMAN, MARTINEZ TRAVEL TO RURAL MISSOURI TO HIGHLIGHT PRESIDENT BUSH'S HOMEOWNERSHIP INITIATIVES
Announce $9 million in New Grants to Build 600 New Self-Help Housing Projects

TROY, Mo., June 20, 2002 - As part of National Homeownership Month, Agriculture Secretary Ann M. Veneman today joined Housing and Urban Development Secretary Mel Martinez to celebrate successful public-private partnerships that are helping Americans realize the dream of homeownership. The two Secretaries also announced $9 million in new grants to help build 600 self-help housing projects, supporting President Bush's goal of expanding homeownership opportunities across the nation.

In Troy, Missouri, the Secretaries visited with families who were able to purchase their first home through grants, loans and assistance from USDA and HUD programs. Richard and Kristina Harris and their two children received a $68,000 loan from the Department of Agriculture, a $23,000 loan from Missouri-based Peoples Bank and assistance from HUD counselors to make homeownership a reality.

"President Bush has put forth a bold initiative to expand homeownership opportunities throughout America," said Veneman. "Through these type of public-private partnerships, we are working together to help families in rural America realize the dream of homeownership."

"Owning a home is the cornerstone of the American dream," added Secretary Martinez. "Earlier this week, the President set an ambitious goal to increase the number of minority homeowners by 5.5 million by the year 2010. To reach that goal, we need strong public-private partnerships similar to this one that has helped these families move into their first home."

Secretary Veneman also used the occasion to announce $9 million in rural self-help housing grants that will help build more than 600 new homes in rural communities in five states, which include:

Homes in Partnership , Apopka, Fla. - $2,310,850

Little Dixie Community Action Agency , Hugo, Okla. - $756,000

Southern Maryland Tri-County Community Action , Hughesville, Md. - $1,310,000

Low Columbia Community Action, Longview, Wash. - $628,000

Coachella Valley Housing Coalition , Indio, Calf. - $3,990,000

"These grants will move us toward achieving the President's goal of expanding homeownership opportunities," said Veneman. "We will continue to strengthen our partnerships and programs so families with need can own a home."

The Mutual Self-Help Housing grant program is used to assist very low- and low-income households in constructing their own homes. The program is targeted to families who are unable to purchase housing through conventional methods. Families participating in a mutual self-help project perform 65 percent of the construction labor on each other's homes under qualified supervision. The savings from the reduction in labor costs allows the lowest income families to own their homes. The funding announced today will continue to build on the President's efforts to assist minority families achieve homeownership. USDA statistics indicate that nearly 65 percent of the 1,343 families assisted in 2001 were minority families.

The Secretaries highlighted the housing initiatives that the President announced earlier this week, which include: 1) the American Dream Downpayment Fund, aimed at helping 40,000 families each year with down payment cost, including more than 750 eligible families in Missouri; 2) a single-family tax credit, designed to increase the supply of affordable homes; and 3) a housing counseling program to help families through the home buying process and to educate them against unscrupulous lenders.

The President also put forth "America's Homeownership Challenge," a call to the real estate industry, the mortgage finance industry and non-profits to join with the administration in expanding homeownership opportunity across the nation.

The Department of Agriculture, through rural development housing programs, has helped more than two million rural families achieve homeownership. In 2001, USDA Rural Development provided $3.5 billion in direct and guaranteed housing loans to assist more than 57,000 rural families buy a home.

USDA Rural Development serves as the lead federal entity for rural development needs and administers financial and technical assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting the USDA's web site at http://www.rurdev.usda.gov .

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