The need for housing is a serious issue in La Paz County. However, the county is not alone. A shortage of housing is a problem in rural Arizona and in rural areas across the nation. The U.S. Department of Agriculture has programs that can help with this. That’s what Charlene Fernandez, State Director for USDA’s Arizona Rural Development, told a public meeting held Sept. 12 at the La Paz County Board of Supervisors’ meeting room.
Fernandez said she and other USDA officials were visiting communities around Arizona to let them know what programs they have available. She said the Biden Administration wants to help communities come back following the coronavirus pandemic. She said they wanted communities to thrive, and housing was needed to do this.
“How do we connect the dots?” she said, making reference to connecting communities with the services they need. “Can we do this? How do we do this?”
While the USDA staff was there to explain what they could do, Fernandez said they also wanted to know what works in our community.
State Rep. Leo Biasiucci, R-District 30, said there’s a big need for affordable housing in rural Arizona. As an example, he said the average home in Lake Havasu City now costs about $500,000, and banks charge 7.9 percent interest.
“We need to address this in rural areas,” he said.
Godfrey Hinds, USDA Housing Program Director, said home ownership is a challenge. He said there are people who have to drive long distances to get to work because there’s no housing near where they work. A major problem is getting housing contractors to come to rural areas.
Hinds described the USDA’s “502” loan program, which he said uses all sources of income for a family to help them qualify for home ownership. Tribal members also qualify for the 502 program.
“We can make home ownership a reality,” he said. “It gives low-income families and people the best chance to qualify for home ownership.”
Hinds said they also have a “504” program to help seniors and low income people maintain their homes.
“We can do a lot here in La Paz County,” he said. “We have the resources, but we need for communities to apply.”
Thomas Ryan, the director of Housing America, described their “self help” program. He said seven to 12 families work together to build their own homes. He said this helps build long-term relationships and a sense of community. He said the program has proven to be very popular in Yuma County.
Housing America is a Somerton, Ariz.-based non-profit that builds affordable housing. They’ve also been involved in revitalizations in Wellton and Somerton. Ryan said they’d like to expand their programs to all of Arizona.
Gary S. Mack, USDA Arizona Business and Cooperative Programs Director, said the department had $80 to $100 million in business loan guarantees available each year for rural areas. These are loans for any capital project. Mack said they want business loans to get to areas where they otherwise may not go to.
Mack said they will work with financing institutions. He said the type of business they receive the largest number of applications for loan guarantees is motels.
Another program that can help development in rural areas is “Rural Energy for America.” Mack said this was created in the 2002 Farm Bill. It provides grants for improving energy efficiency. He said the bulk of their grants have been for solar power installations.
Jennifer L. Burton, Business & Cooperative Programs Specialist, said USDA also has grants available for new businesses. She said they can help businesses get started and provide them with technical support.
The USDA’s grant and finance programs are compatible with other finance programs, Mack said. He said applications for these programs are published in the Federal Register, and applications are usually due in the spring.
Rural areas often need new infrastructure and infrastructure improvements. Michael Dean, Community Programs Director, said USDA can finance some infrastructure, including emergency vehicles and water systems. He said these grants are limited, and added many water systems rely on grants.
County District 2 Supervisor Duce Minor thanked the USDA people for their presentation, but added nothing will get done if people don’t apply for the programs and funding that’s available. He added they needed a point person people could contact if they wanted to learn about these programs.
Hinds suggested they could have someone from USDA come to Parker a couple of times a month.
“We don’t have enough bodies to go around,” he said.
Minor said the USDA needed to work with the La Paz Economic Development Corporation. He asked about the possibility of funding for a veterinary clinic in Parker.
Biasiucci said he appreciated the presentation and was excited to see the USDA people there.
County Supervisors Holly Irwin and Minor also thanked the USDA people for their presentation.
“I’m happy to work with you anytime,” Minor said.
“What we did today is open the door,” Fernandez said. “Let’s see who wants to come in.”