Washington, DC (May 2, 2007) – Rural Rural housing in America is set to get a significant boost thanks to two bills introduced by Congressman Rubén Hinojosa (TX-15), co-founder and chair of the Congressional Rural Housing Caucus. In April, Hinojosa introduced legislation authorizing $10 million in funding for the Housing Assistance Council (HAC) and $30 million for the Rural Housing and Economic Development (RHED) program respectively in Fiscal Year 2008. 

“Twenty percent of our nations’ population lives in Rural communities, yet many of these families live in housing conditions that are poor, inadequate, or run-down,” said Hinojosa.  “These bills will help improve these areas by providing the resources they needed to address the problems of substandard housing.  By authorizing this much needed funding, more American families will be able to access decent housing that will improve their overall quality of life.”

 In its proposed budget for FY08, the Administration attempted to eliminate or zero-fund many rural housing programs, including HAC and RHED.  The budget also eliminates all funding for the construction or preservation of affordable housing in rural communities. 

Specifically, H.R. 1980, the “Housing Assistance Council Authorization Act of 2007,” authorizes $10 million for HAC in Fiscal Year 2008 and $15 million in Fiscal Years 2009-2013.  These funds will go towards providing technical assistance, training, and support to better develop the capacities of rural community-based housing development organizations. It will also supply loans, grants, or other financial assistance to these organizations so that they can widen affordable housing options for low- and moderate-income families.  The funding will also allow HAC to continue to offer financial and other aid to its national network of rural nonprofit builders.

H.R. 1982, the “Rural Housing and Economic Development Enhancement Act of 2007,” authorizes $30 million for the RHED program in Fiscal Year2008 and $40 million for Fiscal Years 2009 through 2013.   This bill will help the RHED Program provide additional funding to state and local entities so that they can better support innovative housing and economic development activities in rural areas.

“It is my hope that we can not only prevent additional cuts in funding for the Housing Assistance Council and the RHED program, but that we can also increase the funding for these programs that directly impact the lives of so many people living in rural communities,” said Hinojosa.