Viewpoint

Aliceann Wolhbruck, Executive Director, NADO Research Foundation

The US Department of Housing and Urban Development (HUD) states that no more than 30 percent of a family’s income should be spent on housing. An estimated 12 million renter and homeowner households now pay more then 50 percent of their annual incomes for housing. A family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment in many parts of the United States.

Despite these statistics, much is being accomplished in helping more rural residents become homeowners. And, while homeownership is the primary goal, programs aimed at helping purchase homes must also provide training to help families maintain budgets and prevent foreclosures.

The US Department of Agriculture’s (USDA) Section 502 Single Family Direct Loan Housing program provides subsidized housing loans to over 600,000 low- and moderate-income rural residents who could not otherwise purchase a home. Through its American Dream Commitment®, the Fannie Mae Foundation has pledged to invest $2 trillion by 2010 to assist 18 million families who are being underserved or overcharged by mainstream housing finance.

The Fannie Mae Guaranteed Rural Housing Loan Product and the Rural Direct Leveraging Products provide low and moderate-income rural residents with better access to credit and decent housing. The Foundation is also working to help homeowners learn how to manage household budgets through its financial literacy program.

This issue reports one example of how regional development organizations are effectively promoting housing in rural areas. The affects can be significant and longlasting not only economically but socially as new homeowners experience the new found responsibility and pride that comes with homeownership.

As highlighted in this Digest, housing is just one area of economic development opportunity for rural areas. Regional organizations effectively assist rural and small metropolitan areas in obtaining the resources necessary to provide quality healthcare, promote entrepreneurship development, as well as identifying other areas of economic need in the communities they serve.

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