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

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

***Bob Anderson, Acting State Director***

**Release Immediate Contact: Bob Krauter**

**Jan. 26, 2006 Work (530) 792-5803**

**Release No. 05.06 Cell (916) 798-9295**

**USDA RURAL DEVELOPMENT INVESTS \$344 MILLION IN RURAL CALIFORNIA**

*2005 annual report highlights assistance to state's rural communities
and residents*

**Davis, CA** -- USDA Rural Development in California invested \$344
million to strengthen rural communities and enhance the quality of life
of residents in 2005. Highlights of USDA Rural Development's diverse
portfolio of loan and grant programs are featured in the 2005 fiscal
annual report released by Acting State Director Bob Anderson.

"It was a very active year for Rural Development in California, with
strong outreach to small rural businesses to create and save jobs, help
for homeowners and renters, and outreach to communities for a variety of
infrastructure projects," said Anderson. "There was unprecedented
support to first responders to make neighborhoods safer and stronger."

Anderson said Rural Development's Single Family Housing Program lead the
way in 2005 with \$120 million invested in affordable housing for rural
residents. Rural areas for Rural Development's housing programs are
generally defined as those under 25,000 population.

"Even in California's very hot housing market, we were able to help
low-income people realize the dream of homeownership, including many
families who took advantage of our Mutual Self-Help Housing Program,"
said Anderson.

Rural Development's Mutual Self-Help Housing Program enables groups,
generally eight to 10 families, to work together over the span of 15-18
months to build their own homes under the guidance of a construction
expert. Rural Development helps with construction financing with local
housing developers and extends low-interest loans to new homeowners.

The 2005 annual report also shows that Rural Development's Community
Program contributed \$112 million in grant and loan assistance to rural
communities to improve water and wastewater facilities and critical
infrastructure projects. Seventeen Economic Impact Initiative (EII)
grants, totaling more than \$675,000, were awarded to first-responders
and others for needs ranging from new police cars and fire trucks to
thermal imaging and communications equipment.

"It was an unprecedented year as Rural Development submitted 17
applications for EII grants and we awarded 17 grants to local
communities," Anderson said. "We hope to duplicate that success in
2006."

**-more-**

**Page 2 -- USDA Rural Development 2005 Annual Report**

Rural Development awarded \$61 million in assistance to rural business
entrepreneurs and cooperatives to support jobs and economic prosperity
in rural areas. It is estimated that more than 1,300 jobs were created
or saved because of Rural Development's Business and Cooperative Program
in 2005.

The agency's Multi-Family Housing Program, which makes grants and loans
for new construction and repair of apartments for low-income tenants,
and for construction and renovation of farmworker housing, contributed
nearly \$50 million.

"We're proud of the accomplishments that the Rural Development team in
California made in 2005," said Anderson. "Rural communities hunger for
economic development for new jobs, betters schools, strong
infrastructure, safer streets and affordable housing. As long as these
critical needs exist in rural California, USDA Rural Development will
play a vital role to help."

To view details of the USDA Rural Development 2005 Annual Report, go to
[www.rurdev.usda.gov/ca](http://www.rurdev.usda.gov/ca).

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, more than 1.1
million jobs have been created or saved through these investments.

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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).**