Remarks by:
Patrick Sheridan
Director, Multi-Family Housing Portfolio Management Division
Rural Housing Service, USDA
Washington, D.C.
Prepayment is a volatile issue. We have four primary concerns as an Agency that we try to address as we go forward.
First, we try to keep the housing affordable where we have it; it is cheaper to try to maintain what we have than to replace it. Where we have a need for affordable housing, we need to work hard to try to keep that there. From that perspective, we're looking out for the rural residents and making sure they have affordable housing available to them. Second, how do we keep the owners interested in this process? Whether it is the existing owner or a new owner, how do we maintain their interest in staying with the program so that we can keep the affordable housing out there? I think that is critical.
Third, we as an Agency have an investment out there, on behalf of the taxpayer, that we have to also address to make sure that the account is adequately serviced and that the taxpayer's investment in this property is not diminished. The fourth issue is how do we do all three of these within the existing statutory authority and the budgetary constraints we are working under? These constraints probably make the first three, at times, difficult to do.