Remarks by:
Thomas C. Dorr
Under Secretary for Rural Development,
U.S. Department of Agriculture
Washington, D.C.
RURAL AMERICA’S VENTURE CAPITAL FIRM
First of all, I would like to say that I appreciate the insight and the input that Colleen Fisher and CARH’s current leadership provide for our programs on issues relating to rural housing, to our portfolio, and to the policies that drive our affordable housing programs. Your active awareness and interest are important.
I understand that the attendees at this week’s conference have all received a copy of our Multifamily Housing Proposed Regulation No. 3560. It was published in the Federal Register on June 2, 2003, nearly five years after we started it.
I can assure you that I was delighted and pleased that we finally did get it published, and also that a special committee of CARH met yesterday to discuss the proposed rule at length.
I certainly encourage your continued deliberation and counsel on this significant proposed regulation change. Let me add also thatÜ there are several areas related to our multifamily housing programs that are under review. In fact, let me make this note: 3560, this particular issue, is probably the Number One priority issue, in terms of dealing with our Multifamily Housing Program. As I have stated to our staff and our program, it is my intention that we deal with this first and foremost.
We have a number of these programs under review, including the accounting of the number of rental units that we have in our portfolio utilizing rental assistance and how we calculated that. Also under review is how we utilize the 538 program, plus a number of other areas relative to our preservation, construction, and rehabilitation issues.
Reviewing this program is in fact my top priority, as I just indicated. We are assembling, and have assembled, a team of seasoned individuals whom we have provided with guidance on this as we move forward.
RD’S OVERALL ROLE
But let me for just a moment broaden the scope on theî overall role Rural Development plays in rural America, and why I believe this is so important as we work with our partners, like CARH, to ensure that we maximize the impact of our programs in rural areas.
Rural Development’s fundamental mission is to serve rural America by helping to harness the resources necessary to attain two goals: Goal Number One is to increase economic opportunity for all rural Americans, and Goal Number Two is to improve the quality of life for all of those who live in rural America.
Working together on the needs and the opportunities is what we do every day. And it is this realization, that it’s important to rural businesses, families, and communities, that will be critical to succeeding at rural economic development. So today we at Rural Development view ourselves — and I realize some of you may have heard this, and some of you may question this — but we in fact view ourselves as rural America’s venture capital firm.
WHAT WE CAN OFFER
Why do I say this? Because of what we can offer to our various rural development programs. We have the tools to support capital investments that will improve the economic opportunities and improve the quality of life for all those that we seek to serve in rural America. We have several program areas which are on the front burner, and you all know many of them.
Our Rural Housing Program built the bedrock of this Administration’s commitment to rural America. And as we celebrate National Home Ownership during the month of June, we are reminded of what a home means to a family. This is nothing new to you. But we know that a safe, secure home is the foundation of the family unit.
That is why the President has proposed a 32% increase for Single Family Housing Direct Loans in the 2004 Budget. Owning a home is the oldest and best form of building equity, and we must — we absolutely must — encourage more families to invest in their future. This investment will help families build wealth, will lead to job growth, and create a geWneration of new economic activity in rural communities.
Another key effort to assist rural families was actually accomplished through Congress’s assistance to us when we asked them to allow us to use carryover self-help funds, which in turn allowed us to provide more 502 Guaranteed program funds. These efforts are important to all rural families, as they will assist 12,000 more families with home ownership opportunities.
WE MUST DO MORE
Now, while worldwide we have the highest percentage of home ownership, we must do more. We must be aggressive in meeting the President’s goal of increasing by five-and-a half million the number of minority families that own their homes by the year 2010.
In addition to the housing areas, we have rural business programs. One of the greatest potentials for economic growth is the development and production of r:enewable energy here in the United States. In addition to our regular Business and Industry loan guarantee programs, we have two credit programs that are focussed on finding ways to integrate our agricultural production into energy systems and efficiencies. We’re also converting products into the value-added business ventures necessary to make things work. And to date the Bush Administration has committed over $45 million for this effort to increase renewable energy ventures throughout rural areas.
If we’re going to support rural America in competing on a global scale, we must ensure that it has the technological infrastructure needed to do so. In January Secretary Veneman and I announced that $1.5 billion was being made available through our rural broadband program to help rural communities build their technological infrastructure.
COMMUNITY CONNECT GRANTS
In addition, I might add, that just within the last ten days, we announced the awarding of $20 million worth of broadband in what we call Community Connect Grants to communities that have no technological infrastructure whatsoever. This allows them — their libraries, their local safe-harbor safety organizations or hospitals — to gain access to the Internet in ways that will facilitate other opportunities for those rural communities.
Let me add that one of the more dramatic examples of Rural America’s ability to be responsive and efficient in helping communities build infrastructure is the ability to complete in a very quick timeframe the obligation of $762 million to water and wastewater requests following the inclusion of the funding in the 2002 Farm Bill. We did this less than five months after the Farm Bill was signed.
Of course these efforts, quite frankly, are in addition to the forty-plus programs that we are administering.
So let me simply say in closing that as America’s rural venture capitalist, we understand that the investments being made in the future of rural America will allow rural families to build the necessary equity in their future, to increase their economic opportunities, and to realize improvement in their quality of life. Your role in CARH is important to this success, and we appreciate your help.
Thank you very much for honoring me with your interest.
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