OCC: Community Affairs - Rural Development Banking Resource Directory

This directory provides descriptions and contact information for a number of organizations and web sites that can provide resources to banks interested in lending, investing, or providing retail financial services in rural communities. These activities are organized under following:

The National Council of State Agricultural Finance Programs (NCOSAFP) provides national representation for states that operate finance programs for farmers, ranchers and the agricultural industry. Organized in November 1984, the NCOSAFP is a non-profit organization that provides a forum for sharing ideas and serves as an information clearinghouse for its member state agencies and the general public they serve. The council is also involved in the promotion and support of rural economic development programs. Through the Aggie Bond program, the participating state coordinates the creation of a bond that allows lenders to earn federally-tax exempt interest income on loans to eligible beginning farmers and ranchers.

USDA Business and Cooperative Programs - Promoting a dynamic business environment in rural America is the goal of Rural Business-Cooperative Service (RBS), Business Programs (BP). BP works in partnership with the private sector and community-based organizations to provide financial assistance, through grants and loans, and business planning. BP helps fund projects that create or preserve quality jobs and/or promote a clean rural environment. The financial resources of RBS BP are often leveraged with those of other public and private credit source lenders to meet business and credit needs in underserved areas. Recipients of these programs may include individuals, corporations, partnerships, cooperatives, public bodies, nonprofit corporations, Indian tribes, and private companies.

USDA's Business and Industry Loan Guarantee Program provides business and industry loan guarantees up to 90 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose is to create and maintain employment and improve the economic climate in rural communities.

Community Development Financial Institutions (CDFI) Fund stimulates the creation and expansion of CDFIs by providing incentives to traditional banks and thrifts through the Bank Enterprise Act awards program. The CDFI Fund also provides relatively small infusions of capital to institutions that serve distressed communities and low-income individuals. Technical assistance grants are also provided to strengthen the capacity of community development financial institutions.

USDA Rural Community Empowerment Program - This Web page describes activities and accomplishments of participating rural communities, and offers access to resources that may be helpful to all rural communities that seek to enhance the quality of their futures.

USDA Community Facilities Guaranteed Loan Program (CFGLP) - Through the CFGLP, USDA Rural Development partners with private lenders to finance essential public facilities in rural areas. The guarantee permits a reduction in lender capitalization requirements, may meet community reinvestment act requirements, and may be sold on the secondary market. Borrowers under the CFGLP are public entities such as municipalities, counties, and special-purpose districts, as well as nonprofit and tribal governments. Community facility loans or bonds, made to develop or improve essential community facilities, may be guaranteed up to 90 percent.

Rural Economic Area Partnership Zones - USDA sponsored pilot for rural revitalization and community development called Rural Economic Area Partnership (REAP) Zones. The REAP Initiative was established to address critical issues related to constraints in economic activity and growth, low density settlement patterns, stagnant or declining employment, and isolation that has led to disconnection from markets, suppliers, and centers of information and finance. Focusing on economic development planning and the formation of public/private partnerships, there are five REAP Zones located in underserved rural areas. The benefits of REAP Zones include: improving the viability of the local community, assisting the local community in developing cooperative strategies to expand community functions, and providing financial and technical assistance to implement citizen-based strategic plans.

Federal Enterprise Zone and Empowerment Communities are programs providing special financial incentives for businesses that locate in certain designated areas. This website contains a listing of Empowerment Zones and Enterprise Communities located in rural areas

National Main Street Center has been working with communities across the nation since 1980 to revitalize their historic or traditional commercial areas. Based in historic preservation, the Main Street approach was developed to save historic commercial architecture and the fabric of American communities' built environment, but has become a powerful economic development tool as well.

Loans for Beginning Farmers and Ranchers (PDF) - The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSM) makes and guarantees loans to begriming farmers who are unable to obtain financing from commercial lenders.

USDA Rural Development Housing Programs 2008, produced by the Housing Assistance Council (HAC), shows that USDA obligated approximately $8.9 billion in Fiscal Year 2008 for the production, repair, or support of over 200,000 units of affordable housing for low- and moderate-income families in rural areas. Much of the information in this report derives from HAC tabulations of program data provided by USDA. Click here for the summary report. (PDF)

USDA Updated State Data Sheets This site has the Economic Research Service's State Fact Sheets, which contain data on population, income, poverty, unemployment, and agriculture characteristics, have been updated with 2007 figures.

Understanding Employer Assisted Mortgage Programs: A Primer for National Banks (PDF 474KB) (August 2007) Abstract: This edition of OCC's Community Development Insights examines the primary risks and regulatory considerations associated with employer assisted mortgages. The report illustrates how lenders can implement their own successful employer assisted programs or work with other employers to create such initiatives. The paper also discusses how banks participating in these programs may meet their Community Reinvestment Act obligations by providing mortgages to low- or moderate-income homebuyers or purchasers of properties in low- or moderate- income neighborhoods.

Foreclosure Prevention: Improving Contact with Borrowers (PDF 295KB) (June 2007) Abstract: This edition of OCC's Insights highlights best practices loan servicers are using to improve their contact rate with delinquent mortgage borrowers. These best practices include, but are not limited to, the use of sophisticated scoring models, customer friendly approaches, partnerships with nonprofit credit counselors, and web-based information on workout options.

Updated Congressional District Profiles The National Low Income Housing Coalition (NLIHC) provides the following Congressional District Profiles. Each profile pulls from a variety of sources and illuminates several dimensions of housing affordability for renter households in each district, the surrounding area, and the state. Each profile is divided into three sections: District, Constituent Areas, and States.

Beyond the Farm, David Dangler (2007). New trends in rural community development make the work of rural community development corporations appear more in line with their big-city counterparts.

OCC's Rural Development Teleseminar (September 25, 2003)- PowerPoint presentation and transcript (PDF 246KB) from an OCC teleseminar on financing rural development. Included presentations by Julie Cripe, President and COO, OMNIBANK, N.A., Texas, William Glover, Assistant Deputy Comptroller, OCC and Karen Tucker, Senior Compliance Specialist, OCC.

Community Developments "Shaping the Future of Rural America-Banks and Economic Development" (PDF) OCC's Fall 2002 Community Developments newsletter includes articles that address how financial institutions are building partnerships with community organizations and others that lead to increased access to commercial and job generating economic development credit in rural communities.

OCC's Native American Banking Resource Directory - This directory provides descriptions and contact information for a sampling of organizations that can offer resources to banks interested in lending, investing, or providing retail financial services in Indian country.

National Association of Development Organizations (NADO) provides training, advocacy, and information for regional development organizations primarily in rural communities. NADO also provides a network for its members to share ideas and innovative projects through its Economic Development Digest, which highlights best practices in rural economic development.

National Rural Development Partnership (NRDP) is a national initiative administered by USDA which uses state collaboratives to bring together key rural players in their states to address critical rural community concerns. The NRDP highlights effective strategies for rural community and economic development and also maintains a web clearinghouse on rural development.

USDA's Research, Education, and Economics (REE) identifies, develops, and manages programs to support university-based and other institutional research and education that supports agriculture and rural communities. Programs focus on a range of topics from financial literacy to supporting small businesses.

Rural Community Assistance Corporation (RCAC) is a nonprofit organization that assists rural communities in 12 western states. They build partnerships, advocate for small communities and develop capacity, especially for the development of public facilities.

USDA Rural Development (RD) provides financial program support for the development of essential public facilities and services such as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service. RD supports economic development by guaranteeing loans to businesses through banks and community-based lending pools. RD also provides technical assistance to help agriculture and other cooperatives get started and improve membership services. Technical assistance is also provided to communities in order to assist them in achieving community empowerment.

Farmer Mac is America's secondary market for first mortgage agricultural real estate loans, and was created by Congress to improve the availability of mortgage credit to America's farmers, ranchers and rural homeowners, businesses and communities. Farmer Mac does this primarily by purchasing qualified loans from lenders, thereby replenishing their source of funds to make new loans.

USDA's Farm Service Agency offers direct and guaranteed farm ownership and operating loans to farmers who are temporarily unable to obtain private, commercial credit.

USDA Rural Rental Housing - Rural Rental Housing Guaranteed Loans are loans that are funded by conventional lenders (banks, mortgage companies, etc.). USDA protects the lender by limiting the loss in the event of default. Qualified lenders are authorized to originate, underwrite, and close loans to eligible borrowers to construct new multi-family housing projects. Lenders may also make loans for the purchase of an existing property where rehabilitation of at least $15,000 per unit is needed. Rural Housing Services will guarantee the lender's loan up to 90% of total development cost. Eligible borrowers include non-profit corporations, public bodies, and for-profit organizations. The program targets small communities with populations of no more than 20,000, located in non metropolitan areas. This program is intended to fund construction, acquisition, or rehabilitation of rural multifamily housing for low-income occupants.

Neighborhood Stabilization Program (NSP) And Hope For Homeowners Programs (HOPE), (October 2008). Recently launched by the U.S. Department of Housing and Urban Development, both programs were created and funded by the Housing and Economic Recovery Act of 2008. NSP provides CDBG funds to states and entitlement communities to buy and renovate foreclosed properties. HOPE provides FHA insurance for refinances. For NSP details, see www.ruralhome.org/infoAnnouncements_2008HousingCrisis.php or Federal Register, 10/6/08, pp. 58329-49; contact Stanley Gimont, HUD, 202-708-3587. For HOPE, see Federal Register, 10/6/08, pp. 58417- 26 or http://www.hud.gov/hopeforhomeowners; contact HUD, 800-225-5342.

Community Developments "A Place to Call Home - Financing Housing in Rural America" (PDF) OCC's Spring 2003 Community Developments newsletter includes articles that address how financial institutions are building partnerships with community organizations and others that lead to increased access to financing for affordable housing in rural America.

Federal Home Loan Bank's MPF Program Allies With USDA
The Mortgage Partnership Finance program of the Federal Home Loan Banks has announced a new partnership with the U.S. Department of Agriculture's Rural Development Program. Under the arrangement, approved FHLBanks participating in the MPF program can purchase RHS Section 502 government-guaranteed loans from qualified members, including commercial banks, thrifts, credit unions, and insurance companies. USDA Rural Development Guaranteed Loans are offered to qualifying low- and moderate-income families to purchase or refinance homes in rural areas with a population of less than 10,000 and non-metropolitan communities with populations of 10,000-25,000, the MPF reported. The partnership enables the FHLBank of Chicago, which pioneered the MPF program, and the FHLBank of Pittsburgh to buy such loans from their members as "a competitive alternative to the secondary mortgage market." The MPF program can be found online at http://www.fhlbmpf.com, and the Rural Development Program can be found at http://www.rurdev.usda.gov.

Housing Assistance Council (HAC) provides loans at below-market interest rates to rural housing developers as well as technical assistance, research, and training to public and private organizations. HAC publishes Rural Voices, a newsletter that provides ideas on funding, planning, and building affordable housing and livable rural communities; HAC News, a biweekly newsletter with brief updates on topics related to rural housing and community development; and dozens of research reports and technical manuals, most of which are available on HAC's website.

Low Income Housing Tax Credits are used extensively in rural areas to subsidize the cost of creating multifamily rental housing. Under the Low Income Housing Tax Credit Program, taxpayers may take a credit against federal income taxes for qualified rental housing development expenditures. The OCC's Community Development Resource page includes a description of the Low Income Tax Credit Program (Spring 2006 Community Development Investments) and a Community Developments Fact Sheet on Low Income Housing Tax Credits (PDF). The OCC's Community Developments insights paper, Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for Banks (NR-2008-10) (PDF 1.1MB) (February 2008) describes how LIHTCs are used to develop affordable rental housing and how banks can benefit from investing in LIHTC-financed projects. It describes the two approaches for investing in LIHTCs - direct investments in individual affordable housing projects and fund investments that have multiple projects managed by third parties. The report outlines risks and regulatory considerations of LIHTC investments and describes how these investments would be considered under the Community Reinvestment Act (CRA).

Rural LISC's mission is to build the capacity of resident-led rural CDCs, increase their production and impact, demonstrate the value of investing in and through rural CDCs and make the resource and policy environment more supportive of rural CDCs and their work. Rural LISC provides more than 70 partner organizations across the country with training, technical assistance, and funding to address the problems rural communities face. Rural Home Loan Partnership (RHLP) was created in 1996 by four national organizations involved in rural housing. The purpose of the partnership is to create affordable housing in rural communities utilizing the USDA's Section 502 Single Family Direct Loan set-aside in partnership with financial institutions and local community organizations. Today the RHLP has grown to 12 national and over 250 local partners cooperating to bring outreach, homeownership counseling, and additional mortgage lending resources to rural communities throughout the country.

NeighborWorks® America Rural Initiative (NRI)
NeighborWorks® America administers the NeighborWorks Rural Initiative which provides funding to community development corporations and local non-profit organizations in over 75 rural communities across the country. These organizations provide homeownership education counseling, develop and renovate single- and multi-family housing, and promote economic development in rural areas across the country.

USDA Rural Housing Finance Programs: Loan Guarantee, Leveraged Loan, and Multi-Family Loan (PDF) OCC's Community Developments Fact Sheet
USDA offers financing programs that work with the private market to finance affordable housing. This fact sheet provides descriptive information about both the Section 502 Loan Guarantee Program and the Section 538 Multi-Family Loan Program, and how banks can participate in the programs.

Community Affairs: Rural Community Development Banking Resource Directory

Community Affairs:
Rural Community Development Banking Resource Directory