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Release No. 98-10-27
October 26, 1998

MHDC Wins National Housing Excellence Award

[Kansas City, Missouri] -- The Missouri Housing Development Commission (MHDC) received a Program Excellence Award at the recent annual conference of the National Council of State Housing Agencies (NCSHA) in Seattle, Wash.

This year's competition received 147 entries in 11 categories. MHDC was recognized with a Program Excellence award in the category Homeownership: Encouraging New Production for its Rural Subdivision Development Program.

The Rural Subdivision Development Program was formulated in March 1996 in response to an increasing number of requests from small communities, builders and developers regarding increase need for housing stock in rural areas. Those communities showing an increase in industry or a stagnant housing market are provided MHDC loans to communities to establish the infrastructures necessary for single family home building. MHDC was able to set aside $5 million for rural infrastructure developments.

As part of the program, a city or community organization develops an area with sewer, utilities, streets and curbing to allow developers to buy the lots and build housings that are priced no higher than a $60,000-90,000 range. Each development is provided a construction grant. After construction is completed, MHDC has partnered with Fannie Mae who assumes the loans so the money can be reused to establish infrastructure in other rural communities. This revolving account allows the funds to be reprocessed to help other communities.

"This program places us in the position of pulling together all the necessary resources to provide affordable housing in rural communities," said Richard Grose, MHDC Executive Director. "The added leverage offered by our partnership with Fannie Mae establishes the Rural Subdivision Program as a forward-moving, high-profile program that will continue to expand our ability to provide development flexibility through the 21st Century."

Communities participating in the program include:

· Vandalia, Missouri: With a $265,000 loan investment, the Central Missouri Counties Human Development Corporation and the Local Intiative Support Corporation will partner to construct Gladview Gardens, providing 25 reasonably priced lots for new development.

· St. Roberts, Missouri: The Hickory Valley subdivi9sion will provide 57 lots for new development with a $607,100 MHDC loan to Carlson-Gardner Properties.

· Perryville, Missouri: Breezeway Estates received a $450,000 loan at 6.6 percent to develop 47 lots for new construction.

· Boonville, Missouri: Lake Farrell Estates was developed through a $461,000 MHDC loan to develop 50 lots.

· Mexico, Missouri: Country Place was developed with 35 lots through a $268,000 MHDC loan.

MHDC is Missouri's housing finance agency. MHDC administers several different programs aimed at providing safe, quality affordable housing to low and moderate income citizens of Missouri.

NCHSA is a national, nonprofit organization created in 1970 which assists the housing agencies of the 50 states advancing the interests of lower income and underserved people through the financing, development and preservation of affordable housing. NCSHA's members are state housing finance agencies with statewide authority. NCSHA represents these agenices in Washington before Congress, the Administration, federal agencies concerned with housing, such as U.S. Housing and Urban Development and the U.S. Treasury Department, and other advocates for affordable housing.

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