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***United States Department of Agriculture -- Rural Development***

***World Wide Web: <http://www.rurdev.usda.gov/ca>***

***Ben Higgins, State Director***

March 20, 2006 Contact: Bob Krauter

For Immediate Release Work: (530) 792-5803

Release No. 12.06 Cell: (916) 798-9295

**RURAL DEVELOPMENT LOANS SPROUT NEW HOMES IN DESERT**

*More than \$15 million in loans helps Mecca residents construct their
homes*

**Davis, Calif.** -- Spring has sprung in Mecca, and the change of
seasons is bringing hope and optimism to a group of low-income families
in the Coachella Valley who will build their own homes under a new
self-help housing project funded by USDA Rural Development. A
groundbreaking ceremony today by Coachella Valley Housing Coalition
celebrates the construction of the first phase of 200 new homes to be
built by homeowners themselves. Rural Development is processing loans of
more than \$15 million to help low-income families construct the homes,
according to State Director Ben Higgins.

"Our involvement in the Self-Help Housing program is one of our most
gratifying efforts because we help make dreams come true for families
who would otherwise not be able to own a home," said Higgins. "This
first day of spring signals a time of optimism and hope for these
families. Over the course of the next few months, they will learn and
work together to realize their dream of owning a home."

Rural Development's Self-Help Housing Program makes loans to allow low
and very low income applicants to participate with their neighbors in
the construction of their homes with the help of a local construction
specialist. The USDA Rural Development loans range from \$98,317 to
\$149,500 in the Mecca project.

"This program fosters a pride of ownership. The time and effort families
put in to construct their homes amounts to sweat equity, which serves as
a down payment on their new homes," said Higgins. "It is a great program
that helps people realize their dream of home ownership."

Coachella Valley Housing Coalition's executive director, John Mealey,
said the Mecca project is exciting because of the strong demand that
exists for affordable housing in the valley.

"The cost of housing in Coachella Valley is on the rise, and this
program is essential to promote affordable housing," said Mealey. "This
area of Southern California has become a hub of housing activity, which
has driven home prices higher and made it difficult to find affordable
land to develop. This project is a culmination of hard work and a solid
partnership with USDA Rural Development."

**-more-**

**Page 2 -- Mecca Groundbreaking on Self-Help Housing Project**

Mealey said this is a busy time for his organization. March 14 marked
the completion of 15 self-help homes in the Imperial County town of
Brawley. On May 4, CVHC will celebrate the grand opening of Paseo de Las
Palmas, a 126 three- and four-bedroom home development in Coachella.
Both the Brawley and Coachella projects are also funded by USDA Rural
Development.

"We could not have realized these projects without Rural Development
funds," said Mealey. "These homes to be built in Mecca are incredibly
beautiful, as are the others that we have developed in the Coachella
Valley. They are a testament to the commitment of USDA Rural Development
to make rural communities greater places to live."

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, Rural Development
has invested over \$63 billion since the beginning of the Bush
Administration to provide equity and technical assistance to finance and
foster growth in homeownership, business development, and critical
community and technology infrastructure. As a result, over 1.1 million
jobs have been created or saved through these investments. Further
information on rural programs is available by visiting the USDA Rural
Development California web site at <http://www.rurdev.usda.gov/ca>.

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**Committed to the future of rural communities.**

**"USDA is an equal opportunity provider, employer and lender."**

**To file a complaint of discrimination write USDA, Director, Office of
Civil Rights, Room 326-W,**

**Whitten Building, 14^th^ and Independence Ave., SW Washington, D.C.
20250-9410**

**or call (202) 720-5964 (voice or TDD).**