WHEDA® Announces $915,000 Loan Fund for Rural Communities

USDA Rural Development provides financing to preserve and revitalize low-income rental housing

Madison – The Wisconsin Housing and Economic Development Authority (WHEDA®) announced today a $915,000 revolving loan fund provided by the United States Department of Agriculture (USDA) Rural Development, for the preservation and revitalization of low-income multifamily rental housing throughout rural Wisconsin.

"WHEDA recognizes that in this ever changing economy, it’s more important than ever that we are able to provide additional access to affordable rental housing in our rural communities," said WHEDA Executive Director Antonio Riley. "WHEDA is proud to have partnered with USDA Rural Development on receiving financing for this loan fund, and we look forward to its impact on the lives of Wisconsin’s rural residents."

The loan fund, which serves populations of 20,000 or less, allows WHEDA to allocate loans to rural multifamily developments that integrate low-income rental housing for families and individuals, including elderly persons and persons with disabilities.

"This is an excellent resource for our partners to rehabilitate our aging multi-family stock," said Frank Frassetto, USDA Rural Development Wisconsin State Director. "I am very pleased that WHEDA is joining USDA Rural Development to help spur housing opportunities in rural Wisconsin. Rural Development and WHEDA have a long history as partners in supporting housing needs and the loan fund for rural communities is another tool for our agencies to use as we work to improve the quality of life of Wisconsin’s rural residents."

WHEDA recently used the loan fund to close on its first deal, Palmyra Park Apartments, and anticipates that two more will close by the end of the year.

This is the first time that WHEDA has received financing from USDA for a rural loan fund. WHEDA expects to close on an additional $2.1 million from USDA in January 2009.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, USDA Rural Development administers about $350 million dollars annually to Rural Wisconsin Communities, which is used to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on our programs is available through USDA Rural Development and can be obtained by visiting the agency's web site at www.rurdev.usda.gov/wi.

WHEDA is an independent state authority that works with lenders to provide low-cost financing for housing and small business development in Wisconsin. For more information on WHEDA's housing programs, call (800) 334-6873 or browse this web site.