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USDA - Rural Development

Building Our Rural Communities

Byron E. Ross, State Director
U. S. Department of Agriculture

Thomas C. Dorr

Under Secretary for Rural Development

A strong and vibrant economy in rural America serves as the

cornerstone of President Bush’s economic agenda. USDA Rural

Development is working hard to expand economic opportunities

and improve the quality of life for all of the 59 million Americans

living in rural communities. Through the efficient and effective

delivery of Rural Development initiatives, new jobs have been

created, home ownership has increased and families and

businesses have been strengthened. New investments and

entrepreneurial spirit will continue to grow, bringing increased

opportunity to rural areas. 

I know and understand that rural Americans are resilient and share

a pioneering spirit that will once again forge new frontiers in the

future. In this same spirit, USDA Rural Development’s challenge is to look beyond today and to

envision a better way to work with America’s rural communities to improve existing partnerships,

and forge new ones. 

In looking back over the last year, we have begun to build an economic foundation, shaped like what

President Bush advocates. I am proud of the aggressive efforts by USDA Rural Development

employees to quickly turn many of the 2002 Farm Bill provisions into new economic hope for

America’s farmers, ranchers and rural families. These efforts ensured the delivery of $703 million

to finance 377 communities water and wastewater infrastructure projects. Additionally, $37 million

helped support the development of 231 agricultural value-added ventures that will bring new

opportunities for increased revenues to our American farmers and ranchers. In total, over $12 billion

was invested through USDA Rural Development programs in rural America in Fiscal Year 2002.

From fire hydrants to fiber optic cable -- from sewers to symphonies -- USDA Rural Development

financial and technical assistance is making a positive difference. In Fiscal Year 2002 alone --

42,000 rural residents became first time homeowners, nearly 7,000 homeowners received loan and

grant funding to make needed repairs and improvements, and 1,400 loans and grants were provided

to assist communities finance essential community facilities. Electricity, telephone, water and

wastewater infrastructure funding totaled over $6.8 billion. Distance learning and telemedicine

funding helped communities in 37 states gain access to modern technologies. Over 1,100 rural areas

have clean drinking water and sanitary waste systems.

I am proud of what we have been able to accomplish. However, to meet ongoing and future

challenges, USDA Rural Development will focus in 2003 on four critical areas of economic

opportunity: Housing; Broadband; Bio-Mass; and Equity Capital

Again, we have accomplished much in fiscal year 2002. I commit USDA Rural Development to

administer all our programs and policies fairly, equitably, and honorably. It is the right thing to do,

it is what I believe, and I will tolerate nothing less. Through our collective hard work we will

continue to increase the economic opportunities in rural communities and improve the quality of life

for all rural Americans.
A Message from

State Director,

Byron E. Ross

The challenges facing rural

Pennsylvania are often

viewed as insurmountable.

We hear terms like “digital

divide” to describe the gap

between the cities/suburbs

and the Internet capabilities

of rural communities.

Healthcare cost and quality

issues continue to drive rural

hospitals and clinics closer to

financial insolvency.

Farmers leave their farms to

seek employment in our cities, or just retire and watch their properties

deteriorate. Young people leave our state with their college degrees for

other places thinking the climate and job opportunities are better

elsewhere. I could go on but I’m sure you get the picture!

These challenges are viewed as opportunities by Rural Development.

We cannot solve all the problems facing rural areas, but we can play a

major role in helping state and local governments, organizations, and

businesses turn the tide. Fiscal Year 2002 saw Rural Development

continue its advances in many of the traditional areas like housing, water

and sewer facilities, community facilities, and business development.

We ventured into everything from micro lending for small businesses

through our Rural Business Enterprise Grant program, to a $17 million

guaranteed loan to develop a $35 million performing arts center. In

addition, the Farm Bill granted new and exciting loan and grant

programs to 1) facilitate broadband development in rural areas; 2) to

improve agricultural business by helping farm producers add value to

their production through marketing and processing; and 3) to promote

the development of alternative fuels. 

In addition to the funding programs, we continue to provide technical

assistance to communities, organizations, businesses, and individuals to

help them help themselves by providing direct assistance through staff

members like our Cooperative Development Specialists, or indirectly

though organizations such as the Rural Water Association.

Sometimes we forget that living in rural Pennsylvania gives us an

advantage over other areas. First, we are located close to huge markets

for all we can produce. Secondly, we have vast natural resources in our

farms, forests, and mines far beyond their natural beauty. And last, a

wonderful group of hard working and honest people that only need a

little help in making their lives, and those of others in their communities,

a little better.

We in Rural Development are dedicated to providing that “help”. Not

only through the money made available by the federal appropriations

process, but also with the support, encouragement, and enthusiasm of our

employees and partners. Thank you for the opportunity to contribute to

improving the quality of life in Pennsylvania.

Contents

Rural Housing Service

Community Facilities

Multi-Family Housing

Farm Labor Housing

Housing Preservation Grants

Rural Business -

Cooperative Service

Business & Industry Loans & Guarantees

Specialty Lending & Grant Programs

Cooperative Services

Community Development

Rural Housing Service

Section 502 Home Purchase Program

Mutual Self-Help Housing

Partnerships

Section 504 Home Repair & Rehabilitation

Section 502 Guaranteed Housing Program

Rural Utilities Service

Water and Waste Disposal Provisions of the

 2002 Farm Bill

Distance Learning and Telemedicine Grants

Other Programs

Environmental Awareness

Pennsylvania Rural Development Council

Outreach

Civil Rights

Pennsylvania Rural Development 

Offices
Community Facilities (CF)

The Community Facilities (CF) program provides loans, grants, and loan guarantees to public bodies, not-forprofits, and Indian tribes for health care, public safety, public improvements, community support, educational

services, and telecommunications. In FY 2002, Rural Development's CF programs assisted thousands of rural

Pennsylvania residents in several communities by providing the funding needed for projects like emergency

equipment, assisted living facilities, and restoring historic theaters. CF grant funds were also used to assist a

firefighter school in Schuylkill County and to fund a rural dental clinic in Mifflin and Juniata Counties.

We are proud of our recent accomplishments. In Fiscal Year (FY) 2002, PA Rural Development provided a

record-breaking $27,523,280 in Community Facilities assistance to rural Pennsylvania. This assistance

included a $17 million loan guarantee to the Pike County Industrial and Commercial Development Authority

that will be used for development of the Mountain Laurel Center for the Performing Arts in Bushkill,

Pennsylvania.

FY 2002 - Community Facility Funding

County Project Name Loan Amount Grant Amount

Bedford Bedford-Fulton Housing Services $ 2,265,000

Bradford Bradford County Regional Arts Council, Inc. $ 775,000 $ 50,000

Butler The Strand Theater Initiative *$ 100,000

Clarion Millcreek Township $ 55,000

Clinton Keystone Community Network, Inc. $ 561,600 $ 83,890

Elk Community Education Council $ 750,000

Fayette Fayette Emergency Medical Services $ 300,000

Jefferson Jefferson County Non-Profit Housing Corp. $ 3,750,000

Mifflin Mifflin/Juniata Dental Clinics, Inc. $ 40,950

Pike Pike County Industrial & Commercial

Development Authority

 *$17,000,000 

Schuylkill Schuylkill County Volunteer Firefighters $ 90,000

Schuylkill McAdoo Fire Company, Inc. $ 265,000 $100,000

Schuylkill Borough of Girardville $ 306,840

Schuylkill Rush Township $ 600,000

Venango Child Development Centers, Inc. $ 250,000

Washington Burgettstown Area Senior Citizens, Inc. $ 90,000 $ 90,000

Total Obligated $27,068,440 $454,840

*Indicates a guaranteed loan.

Assisting our Rural Firefighters

Rural Development provided $755,000 in CF loans and grants to three

fire or emergency response companies in rural Pennsylvania counties

during fiscal year 2002. This assistance included a grant to the

Schuylkill County Volunteer Firefighters that was used to build a new

training tower (pictured right) for their fire fighting school. A $300,000

loan was made to the Fayette Emergency Services in Fayette County to

purchase fifteen cardiac monitors and defibrillators, and a $365,000

loan/grant combination was made to the McAdoo Fire Company, Inc., in

McAdoo, PA to purchase a new ladder truck.
Artist's rendering of the proposed concert pavilion

Groundbreaking ceremonies for the Mountain

Laurel Center were held on October 2, 2002.

Pictured above are Edward Sader, Project

Coordinator, Byron Ross, PA Rural Development

State Director, Marcella Duld, Rural Development

Specialist and Gary Rothrock, PA MFH/CF

Program Director

Community Facilities (CF)

Mountain Laurel Center for the Performing Arts

Cultural Arts Facility

The Mountain Laurel Center for the Performing

Arts will be a celebration of the arts where

diverse audiences will enjoy world-class

musical and theatrical performances in a setting

of pristine beauty. It is located in the heart of

the Poconos, on a pastoral 657 acre tract with an

85 acre lake as its centerpiece. The property

was originally home to the Unity House Resort

owned by the International Ladies Garment

Workers Union, and now is a designated

historical landmark. The facilities have been

unused for many years and have fallen into

disrepair, but will be refurbished as part of the

project. When completed, the property will include a 10,000 seat concert pavilion, a 1,200 seat theater, a

nightclub situated on the lake, and summer arts camp facilities.

Performances will include classical music, Broadway shows,

popular music, jazz, and dance.

The project is owned by the Pike County Industrial and

Commercial Development Authority, which issued bonds in the

amount of $17 million that will be guaranteed by Rural

Development. This funding will be combined with a $15 million

State grant, $4.5 million in contributions, and other funds to

fund the $36.5 million project. The groundbreaking was held on

October 2, 2002, with completion of the pavilion planned for

2003. This project is expected to have a major economic impact

on the Pocono region by providing a new destination for

thousands of visitors each year, resulting in over a hundred new

jobs and millions of dollars of economic activity. Rural

Development is pleased to be able to assist with this important

cultural facility.

Jefferson County Non-Profit Housing Corp.

A $3,750,000 loan was made to the Jefferson County NonProfit Housing Corp. to purchase an existing assisted

living/personal care facility so that the community could

continue to provide the elderly with support services enabling

them to live as independently as possible.

The facility has 31 rooms of personal case, fifteen independent living apartments, and rental space for elderly

case service agencies. Rural Development's approval of this loan allowed the residents of Jefferson County to

have more local control over housing, health care, and social services. 
Multi-Family Housing (MFH)

Seven Multi-Family Housing loans were obligated in FY 2002, six for improvements to existing apartment

complexes and one for construction of a new 14-unit elderly housing complex. Rural Development's MultiFamily Housing programs enable housing developers to build quality and affordable rental units for

Pennsylvania's low-income, elderly, and disabled rural residents. The Rental Assistance Program assures that

qualified applicants pay no more than 30% of their income for housing.

FY 2002 Section 515 Loans

County Project Name Loan Amount

Adams East Berlin Manor $ 304,095

Blair Williamsburg Area Improved Dwellings (new construction) $ 760,193

Cambria Woomer Brothers $ 173,000

Clarion Knox Commons $ 183,000

Erie Malvina Street Apartments $ 163,500

Jefferson Sycamore II $ 285,000

Warren Lakeside Apartments $ 114,200

Total Obligated $1,982,988

Saucony Meadows Apartments 

Complex Opens in 2002

Saucony Meadows is a 50-unit apartment complex

for the elderly and disabled. The complex has 47

standard one-bedroom apartments and three

apartments that are fully handicapped accessible.

The building includes an office, laundry, and large

community room. Saucony Meadows is located in

Kutztown, PA, and is owned and operated by Saucony Meadows, Inc., a non-profit corporation.

Farm Labor Housing

The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing

for domestic farm laborers. Loans are made to farmers, associations of farmers, family farm corporations,

Indian tribes, nonprofit organizations, public agencies, and associations of farmworkers.

The Farm Labor Housing loans and grants are provided to buy, build, improve, or repair housing for farm

laborers and those engaged in on-farm processing. Funds can be used to purchase a site or a leasehold interest

in a site, to construct housing, day care facilities, or community rooms; to pay fees to purchase durable

household furnishing; and to pay construction loans interest. 

Housing Preservation Grants

The Housing Preservation Grant (HPG) program provides grants to sponsoring organizations for the repair or

rehabilitation of low-and very low-income housing. The grants are competitive and are made available in

areas where there is a concentration of need. Three HPGs were obligated in Pennsylvania in FY 2002. The

Redevelopment Authority of Fayette County received $121,671, the Redevelopment Authority of Wayne

County received $12,671, and the Redevelopment Authority of Monroe County received $49,807. The grants

will be combined with other funds to operate programs that provide low-cost loans or grants to very lowincome rural homeowners to make essential repairs to their homes.
John Lawson used his CFF loan

to hire additional employees for

his demolition and hauling

business, allowing him to bid on

and win larger contracts.

Interior view of the new art and antique galleria

and café financed by RBEG funds through the

Meadville Area Industrial Commission.

Rural Business - Cooperative Service (RBS)

Rural Development provided more than $10 million in loans and grants to rural Pennsylvania businesses for

start up and expansion in Fiscal Year 2002. These businesses created or saved more than 4,500 jobs for rural

Pennsylvanians - many of them in areas where unemployment rates are higher than the national average. In

addition to creating or preserving quality jobs, RBS programs promote a clean rural environment.

RBS staff works closely with private sector lenders and community-based organizations to provide financial

assistance and business planning. The $10 million of RBS financial resources were leveraged through

partnerships with federal, state and local agencies, and private credit sources for a grand total of over

$17,632,000 in assistance to rural Pennsylvania businesses.

Business and Industry Loans and Loan Guarantees

In July 2002, Rural Development approved a $900,000 business loan guarantee

for Olson and Olson, Inc. located in Chambersburg, Franklin County. Olson

and Olson, Inc. is a machine parts manufacturer that focuses on hydraulic

cylinders, hydraulic gear pumps, hydraulic swivels, and a concept cylinder.

The loan provided funds for working capital to stabilize the growth of their

business and additional funds to refinance existing debt, which would

ultimately save them over $93 thousand in annual debt service. The loan also

allowed for the creation of 10 jobs and the retention of 65 jobs strengthening

the economy of Chambersburg. Olson and Olson, Inc.'s focus on quality and

efficiency allows them to provide hydraulic cylinders for lifts used in such

well-known stores as Home Depot.

In Fiscal Year 2002, Rural Development provided $6,243,570 to five projects in loan note guarantees for

Business and Industry (B&I) loans in rural Pennsylvania. The projects serviced a variety of industries

including agricultural processing, farmers market, manufacturing and the petroleum industry. As a result of

the program, three hundred and fifty three rural jobs were saved and twenty new jobs were created.

Specialty Lending and Grant Programs

The Specialty Lending Division administers a number of grant and loan

programs aimed at fostering economic development in rural areas. Nineteen

Rural Business Enterprise Grants (RBEG), totaling more than $1.7 million,

were granted during Fiscal Year 2002. RBEGs can be used for technical

assistance, construction, or relending to small and emerging private businesses.

The Community First Fund (CFF) of Lancaster used a RBEG to establish a

small business revolving loan fund. One of the recipients, John Lawson, owner

of Lawson Demolition and Hauling, used a $10,000 loan to hire additional

employees to expand his business and handle larger projects.

The City of Meadville used Rural

Development's RBEG program to

transform a vacant first floor space in an

anchor building into a unique art and antique gallery and café. The

project site, located in the heart of the City of Meadville, occupies

approximately 4,750-sq. ft. The project serves as a model to

encourage growth of additional ‘niche’ stores in the community,

stabilizing the downtown area while increasing the local municipal

tax base. The Meadville Area Industrial Commission, a local nonprofit economic development agency, served as the project applicant.

Rural Development's RBEG provided the critical gap funding needed

to bring the project to fruition.

Olson and Olson, Inc provides

hydraulic cylinders for lifts

used in such well-known stores

as Home Depot.
Rural Business - Cooperative Service (RBS)

Specialty Lending and Grant Programs (continued)

Intermediary Relending Program (IRP) loans finance business facilities and community development projects

in rural areas. These loans are made to intermediaries involved in economic development. The funds are

used to make loans to local businesses. Rural Development made three (3) IRP loans totaling $1.745 million

in FY 2002. Two Rural Business Opportunity Grants (RBOG) were made totaling $45,000. These grants are

used for planning, technical assistance, and training activities that improve rural economic conditions.

Value-Added Agricultural Product Market Development Grants - Four Pennsylvania businesses were selected

for funding through this program. 

Pennsylvania Beef Council (pictured left) received a $105,000 grant for

planning purposes to enable the council to expand participation and to

educate the consumer about the valueadded beef products being introduced to

the Pennsylvania market.

American Corn Growers Association (pictured right) received a $150,000

grant which will be used to provide farmers and farm organizations with the

tools to evaluate the feasibility of ethanol production and build consumer

awareness of the role ethanol-blended fuels could play in meeting Clean Air

Standards.

Cooperative Services

Cooperative Development provided technical assistance to seven new groups interested in forming a

cooperative in FY 2002. Assistance continued with eight projects begun in previous years. Three new

cooperatives were formed with Rural Development's assistance. 

Lincoln Cooperative was incorporated to provide transportation services to persons with disabilities in rural

Berks County, especially at times after public transportation is not available. Operation is expected to begin

with one specially equipped van, and expand as experience and resources allow. Got Essa (Good Food), a

cooperative of eight Amish families, incorporated to market items produced by member families. Products

include cheese, preserved foods, candies, and baked goods. A direct mail catalog was prepared and mailed to

potential buyers in central Pennsylvania. Western Pennsylvania Organic Vegetable Growers incorporated to

market organic produce to restaurants and other specialty markets in the Pittsburgh area. 

Pennsylvania Cooperative Potato Growers, Inc.

received a $450,000 grant to build and operate a

potato processing facility in Schuylkill County

that will convert potatoes into dehydrated

potato products.

Eastern States Bison Cooperative received a $109,141

grant which will be used to establish a working capital

account to provide for the processing, packaging,

labeling, distribution, marketing, and sale of valueadded bison (buffalo) meat.
Rural Business - Cooperative Service (RBS)

Cooperative Services (continued)

New cooperative development initiatives included a wide array of interests, including

emu, organic milk, forestry, and crafts. Technical assistance activities ranged from

simply providing information about cooperatives and the development process to

completion of member surveys and market projections. Draft legal documents were

prepared for the groups as preparation for their work with their attorneys.

Community Development

The Community Development staff continues to serve rural communities and organizations with Technical

Assistance in a variety of areas that encompass Strategic Planning, Leadership Development, and obtaining

financial assistance. Groups and communities served include the Lenape Native American organization in

Western Pennsylvania and Latino Organizations in Berks County. Community Development efforts continue

with two Enterprise Communities located in Lock Haven and Fayette County, a Champion Community in

Cameron County, and other designated and non-designated communities that sought assistance. Those

communities include Whitsett, a small community in southwestern Pennsylvania, and Dallas, a rural borough

in the Northeast portion of the state. Both communities sought Strategic Planning assistance.

The Borough of Honesdale, Wayne County (pictured right), stands as a

success story in downtown revitalization in which Rural Development

played a significant role. The Greater Honesdale Partnership (GHP)

received two grants to initiate an "incubator without walls" which assists

new businesses with advertising, publicity, and technical services.

These benefits are realized through the efforts of GHP's CEO, Carson

Mader. GHP also received a grant to develop a sophisticated web site

for Honesdale that includes on-line shopping, tourist attractions, and a

virtual walking tour. GHP has fully implemented all of the goals

established through the strategic planning/visioning process that was initiated several years ago.

A hallmark development in the Federal Enterprise Community of Fayette County is the Campus of Services

located in Uniontown, Pennsylvania. Fayette County Community Action Agency (FCCAA) has developed

the Campus of Services and revitalized a deteriorating portion of downtown Uniontown by renovating

longtime existing buildings and developing new buildings on the Campus of Services. Unique to the project

is the variety of funding sources for community development projects on the Campus of Services, which total

more than $12 million. FCCAA has been able to leverage the funds through Pennsylvania companies' tax

credit programs, federal loan programs, foundations and private financing. 

The Campus of Services is a comprehensive location for health and human services for the residents of

Fayette County. The Campus of Services includes the Community Service Center, the Food Bank and

Warehouse, the Family Service Center and Meadow Heights apartments. The Family Service Center also

features shared meeting rooms for FCCAA and its tennants as well as access to the latest computer

technology through a technology center.

The newest addition to the Campus of Services is Meadow Heights

Apartments, a 60-unit senior living facility for low-to-moderate income

residents age 62 and older (pictured left) which opened in 2002. Meadow

Heights not only offers affordable housing, but optional supportive services

on an as needed basis. Support services available to the residents include

access to medical and dental care as well as housing and food assistance

programs at the Family Service Center. 
Single Family Housing (SFH)

Rural residents of Pennsylvania have improved their quality of life by participating in Rural Development

Housing programs that ensure access to affordable, well built homes. Homeownership promotes economic

stability for families, and this stability enables families to generate equity to finance education, start small

businesses, or save for retirement. Single Family Homeownership helps to stabilize neighborhoods, thereby

enhancing the quality of life in rural communities. By providing direct and guaranteed loans to low and

moderate income families, the USDA Rural Housing Service promotes community building in rural

Pennsylvania. These loans are for the purchase, construction, rehabilitation or relocation of an eligible

dwelling.

Section 502 Home Purchase Program and Mutual Self-Help Housing Programs

Pennsylvania families with limited household income may be eligible to participate in

our Section 502 Direct Single-Family Housing (SFH) program that provides payment

assistance to qualified borrowers by subsidizing mortgage interest rates as low as 1%.

This payment assistance makes homeownership affordable for many rural residents in

Pennsylvania.

The Mutual Self-Help Housing Program makes homes affordable by enabling future

homeowners to work on homes themselves. With this investment in the home, or "sweat

equity", each homeowner pays less for his or her home. Each qualified applicant is

required to complete 65% of the work to build his or her own home. 

Technical Assistance Grants and Site Loans are provided to nonprofit and local government organizations,

which supervise groups of 5 to 12 enrollees in the Self-Help Program. Members of each group help work on

each other's homes, moving in only when all the homes are completed. Once accepted into the Self-Help

Housing Program, each individual enrollee generally applies for a Single-Family Housing Direct Loan

(Section 502).

Partnerships

Rural Development partnered with Housing and Urban

Development (HUD) to utilize the Housing Choice Voucher

Program. This program allows a public housing agency (PHA) to

provide tenant based assistance to an eligible family when they

purchase a home. The program provides additional options and

promotes long-term affordability and greater self-sufficiency for

low-income households. Program participants must be “first- time

homeowners” in that a family member must not have owned title to

a principal residence in the last three years. Families are required to

attend a homebuyer workshop sponsored by a suitable counseling

program before purchase of a home, and all units must meet HUD Housing Quality Standards.

Another partner, the PA Housing Finance Agency (PHFA) joined

Rural Development in creating a new joint financing program

called the PHFA/RHS Homestead Program. This program

allows low-income families the chance to become homeowners

by helping provide up to $7,500 in closing costs and 100%

financing below market interest rates. A Tioga County resident

was the first recipient of the new loan program and her new

home was the site of a ceremony to mark this "first". Pictured

(left) helping plant a tree, are the family and representatives of

the organizations who assisted in making the loan happen. The

family moved into their new home in May 2002.
Single Family Housing (SFH)

Section 504 Home Repair and Rehabilitation Program

Home improvement, repair loans, and grants under the Section

504 program are available to very low-income rural homeowners

to improve health and safety standards in their homes, and also to

make them accessible for individuals with disabilities. Payments

remain affordable with loan interest rates fixed at 1% and a

twenty-year amortization period. Grants are also available for

Pennsylvania residents, 62 years or older, who cannot afford to

repay a home loan.

Section 502 Guaranteed Single Family Housing Program

The Rural Housing Service also offers a guaranteed loan program for families with low to moderate incomes.

No down payment is required and the participating lender often includes closing costs in the mortgage. Lack

of a down payment often prevents prospective homebuyers from obtaining a loan from private lenders, but the

RHS guaranteed loan program has greatly increased the number of rural Pennsylvania homeowners. During

FY 2002, the guaranteed loan program enabled 838 families, who were unable to obtain conventional credit,

to purchase their own homes

Awards were presented to the top 6 producing Originators for the Guaranteed Housing Loan Program for FY

2002. Over 230 loan originators participated in the RHS guaranteed loan program, and the top 5 originators

produced 21% of the loan dollars. The award recipients were:

 Larry Hutchinson

 Omega Bank

 Brenda Thompson

 Jersey Shore State Bank

 Alison Swanson

 Honesdale National Bank

 Dorothea Stitzer

 Jersey Shore State Bank

 Rick Conner

 Express Financial Services

Packaging Applications

Often, very-low and low-income applicants need additional assistance in preparing and submitting an

application. Therefore, Rural Development has enlisted the assistance of non-profit organizations to assist

applicants in completing applications and in meeting the Agency’s requirements for assets, credit history, and

repayment ability. Packagers are valuable resources because some refer applicants to or provide them with

credit counseling and homebuyer education information.

Summary

In 2002, the Rural Housing Service assisted 1688 families in the purchase, construction, and repair of homes.

Our Single Family Housing program funded $38,875,340 in direct loans, $897,300 in repair loans, $1,149,570

in repair grants, and $67,300,000 in guaranteed loans. Funds leveraged with other sources contributed an

additional $1,117,289. USDA Rural Development's Single Family Housing programs made it possible for

many Pennsylvania residents to obtain safe, affordable housing.

Pictured left is Larry Hutchinson, Omega Bank and

Bernard Linn, RD Guaranteed SFH Loan Specialist
Rural Utilities Service (RUS)

Through its Water and Wastewater programs, Pennsylvania RUS

was able to improve the quality of life in several rural communities

this past year. We provided over $86 million in loans and grants to

serve thousands of people in Pennsylvania with clean drinking

water and modern sewer facilities. 

Pictured left are Erv Myers, Rural Development Specialist, and

John Williams, Rural Development Engineer, in front of a special

thanks from Sandycreek Township, Venango County. Rural

Development provided additional funding for their water project

last fiscal year.

The Significance of the Water and Waste Disposal Facility Provision of the 2002 Farm Bill

In a time when our government is preoccupied and distracted with security, war,

and other pressing issues, we must not forget about rudimentary and longstanding issues. Water and waste disposal facilities are crucial every place

where there is a significant human presence. They are key factors in

maintaining healthy communities. They help provide for some of our basic

necessities - we want to drink clean water and we want our rivers, lakes, ponds,

oceans, and surroundings to be untainted. This is why the Water and Waste

Disposal provision of the Farm Security and Rural Investment Act of 2002, also

known as the 2002 Farm Bill, is so important. 

The Rural Development Water and Waste Disposal provision helps to obtain and

make available the necessary resources to establish water and waste disposal

facilities compliant with federal and state environmental standards. By signing

the 2002 Farm Bill, President Bush gave Rural Development the authority to

convert $360 million of Commodity Credit Corporation funds for a one-time

reduction in the backlog of pending applications for grants and loans to construct

or improve water and waste disposal facilities and emergency community water

systems. 

Pennsylvania's 2002 Farm Bill Projects Included:

Towanda Municipal Authority (Bradford County) - The $3,607,400 package ($1,844,700

loan/$1,762,700 grant) will be used to install a sewage collection system in Monroeton Borough, North

Towanda Township and Towanda Township. 

Sugar Grove Area Sewage Authority (Warren County)- The $6,281,500 package ($3,227,600

loan/$3,053,900 grant) will be used to provide sewage collection and treatment to Sugar Grove Borough and

portions of Sugar Grove Township.

Newberry Township (York County)- The $3,554,200 package ($2,804,200 loan/$750,000 grant) will be

used to provide centralized sewage collection for Conewago Heights to correct malfunctioning on-lot disposal

systems, and correct their resulting hazards.

Worthington-West Franklin Joint Municipal Authority (Armstrong County) - The $8,217,000

package ($3,800,000 loan/$4,417,000 grant) will be used to provide a sewage collection and treatment facility

for Worthington Borough and West Franklin Township.
Rural Utilities Service (RUS)

COUNTY PROJECTS FUNDED IN FY 2002 LOAN AMOUNT GRANT AMOUNT

Armstrong Worthington-West Franklin Joint Municipal Authority $ 3,800,000 $ 4,417,000 

Bedford Hopewell Township $ 2,050,800 $ 3,184,200 

Bedford Canton Borough $ 2,420,000 

Bradford Towando Municipal Authority $ 1,844,700 $ 1,762,700 

Cambria Central Mainline Sewer Authority $ 3,227,350 $ 5,174,300 

Clearfield Huston Township $ 600,000 

Columbia Locust Township Municipal Authority $ 67,700 $ 67,600 

Fayette Luzerne Township Sewage Authority $ 184,140 

Fayette National Pike Water Authority $ 3,427,000 $ 1,000,000 

Franklin Quincy Sewer Authority $ 1,632,400 $ 500,000 

Jefferson McCalmont Township $ 1,100,000 $ 2,083,800 

Lycoming Lycoming County Water and Sewer Authority $ 2,970,100 $ 2,231,600 

Potter Harrison Township $ 127,500 

Schuylkill Gilberton Borough $ 97,000 $ 517,200 

Schuylkill Girardville Area Municipal Authority $ 467,200 

Schuylkill Pine Grove Joint Treatment Authority $ 7,205,900 $ 1,898,600 

Tioga Jackson Township Municipal Authority $ 1,398,000 $ 2,553,000 

Tioga Richmond Township Municipal Authority $ 172,600 $ 655,500 

Venango Frenchcreek Township $ 1,550,000 $ 1,456,300 

Warren Kinzua-Warren County Joint Authority $ 1,525,100 $ 1,076,600 

Warren Sugar Grove Joint Municipal Authority $ 3,227,600 $ 3,053,900 

Washington Center-West Joint Sewer Authority $ 5,857,000 $ 4,921,660 

Wayne Lakeland Colony Corporation $ 350,000 

Westmoreland Derry Township Municipal Authority $ 922,000 

York Newberry Township/Conwego $ 2,804,200 $ 750,000 

TOTAL $ 48,844,150 $ 37,488,100

Distance Learning and Telemedicine (DLT) Grants

The Distance Learning and Telemedicine Program (DLT) is designed specifically to meet the educational and health care

needs of rural America. Through loans, grants, and loan and grant combinations, advanced telecommunications

technologies provide enhanced learning and health care opportunities for rural residents. This fiscal year, Pennsylvania

submitted eleven applications for the DLT Loan/Grant program. Of the eleven submitted, four were selected for

funding:

Brownsville Area School District received $500,000 to establish an intra-district distance learning network for three

elementary schools and will provide educational opportunities for students, teachers, and community members. The

multi-faceted approach to distance learning will include: adult education, job readiness training, professional

development, continuing education and special events to establish the schools as a community resource.

Greene County Industrial Development Authority received $456,647 to be used in part of a collaborative effort to

provide a variety of user-friendly technologies for over 40,000 rural residents to access telepreventive medicine and

telemedicine. The project will focus on motivating rural residents to improve health-related behavior and support and

guide them when searching for solutions to health care problems.

Wayne Memorial Hospital, Inc. received $500,000 which will be used to convert

their traditional radiology services to a teleradiology system. The film based x-ray

system will be upgraded to digital images using computerized technology. This

will allow digital radiological images to be transmitted over the Internet from one

of the 13 participating end user sites to one of the three full-service hospitals where

they will be read, in real time, by a hospital radiologist. Pictured right are Wayne

Memorial Hospital, Inc., representatives with State Director, Byron Ross.

Home Health Services Foundation - The Visiting Nurses Association, Western Pennsylvania (VNA) in partnership with

Home Health Services Foundation received $500,000 to provide telemonitoring systems in the homes of rural patients

which will improve patient care through the frequent and consistent monitoring of vital information.
Other Programs

Environmental Awareness

The National Environmental Policy Act (NEPA) establishes the Federal government's environmental policies.

Its primary goal is to help public officials make decisions that are based on an understanding of the

environmental consequences of their actions, and to take actions that protect, restore, and enhance the

environment.

To accomplish this, USDA - Rural Development requires its applicants and current borrowers to consider

environmental impacts before taking actions financed by the Agency. The same is true for private lenders

whose loans are guaranteed by the Agency. Before any Rural Development assistance can be approved, the

Agency will assess the environmental impact of the proposed action to ensure that steps are taken to avoid or

reduce adverse effects.

In carrying out its mandates, Rural Development must ensure compliance with numerous Federal

environmental laws, regulations, and Executive orders. Some of these are: the Endangered Species Act, the

Safe Drinking Water Act, the Farmland Protection Policy Act, the National Historic Preservation Act,

Departmental Regulation 9500-3, Land Use Policy and Executive Order 11988, Floodplain Management.

Pennsylvania Rural Development Council

The creation of State Rural Development Councils was authorized by the federal government in 1990.

Pennsylvania entered into a Memorandum of Understanding in 1992 with USDA, thereby creating the

Pennsylvania Rural Development Council, of which, Byron E.

Ross, PA Rural Development State Director, is one of the federal

members. Pictured right is Mr. Ross speaking at a recent Rural

Development Council conference.

The PA Rural Development Council is a thirty-member council

comprised of state, federal, private, nonprofit, and local officials.

The Council is an organization made up of individuals from diverse

backgrounds that have come together to build a brighter future for

rural Pennsylvania communities and their citizens.

The Rural Development Council seeks to: (1) enhance communication and the sharing of information; (2)

facilitate coordination between the public and private sectors for efficient use of existing and new resources;

(3) promote collaboration and cooperation to preserve the quality of life in rural Pennsylvania; and (4) assist

local communities to meet their rural development goals.

Outreach

Pennsylvania residents will find us many places throughout the year -- The Farm Show, Home and Builder's

shows across Pennsylvania, Penn State's AG Progress Days, and County Fairs. These are just a few places

Pennsylvania residents have the opportunity to meet our program specialists and discover the USDA Rural

Development programs available to them and their communities. Our Program Specialists also visit local

community leaders and groups to advise rural residents of the programs available to them.

Civil Rights

Assuring equal opportunity in employment and program delivery is essential in administering Rural

Development Programs. Each Rural Development employee is responsible for ensuring the highest quality of

services for all recipients and beneficiaries of our programs. Rural Development is committed to fair and

equal treatment to employees and customers.
Pennsylvania Rural Development Offices

Byron E. Ross, State Director

Pennsylvania State Office

Suite 330, One Credit Union Place

Harrisburg, PA 17110-2996

(717) 237-2299

(717) 237-2261 (Hearing Impaired)

www.rurdev.usda.gov/pa

Bradford Area Office

R. R. #5, Box 5030-F

Towanda, PA 18848-9333

(570) 265-6969, ext. 203

Butler Area Office

602 Evans City Road, Suite 101

Butler, PA 16001-8701

(724) 482-4800, ext. 4

Clinton Area Office

216 Spring Run Road, Room 103

Mill Hall, PA 17751-9543

(570) 726-3196, ext. 203

Crawford Area Office

14699 N. Main Street Extension

Meadville, PA 16335-9441

(814) 336-6155

Juniata Area Office

R. D. #3, Box 301

Mifflintown, PA 17059-9621

(717) 436-8953, ext. 4

Lehigh Area Office

2211 Mack Blvd.

Allentown, PA 18103-5623

(610) 791-9810, ext. 4

Lycoming Area Office

542 County Farm Road, Suite 205

Montoursville, PA 17754-9685

(570) 433-3006

Susquehanna Area Office

R. D. #7, Box 7114

Montrose, PA 18801-9515

(570) 278-3781/2542

Washington Area Office

P. O. Box 329

Meadowlands, PA 15347-0329

(724) 222-3060, ext. 4

Westmoreland Area Office

Donohoe Center, Donohoe Road

R. R. #12, Box 202A

Greensburg, PA 15601-9217

(724) 853-5555

York Area Office

124 Pleasant Acres Road

York, PA 17402-8988

(717) 755-2966, ext. 4

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of

race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status.

(Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for

communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at

(202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write:

USDA, Director, Office of Civil Rights

Room 326-W, Whitten Building

14th and Independence Avenue SW

Washington, D.C. 20250-9410

(202) 720-5964 (voice or TDD)
U.S. Department of Agriculture

Rural Development

Pennsylvania State Office

Suite 330, One Credit Union Place

Harrisburg, PA 17110-2996