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Show Subsidies stopped on FHA Rural Housing Don L. Rasmussen, Iron County Supervisor for the Farmers Home Administration announced today that their Rural Housing Credit Frogram will continue on an unsubsi-dized unsubsi-dized basis. Mr. Rasmusren said several Federally-subsidized loan and grant programs for rural nous, ing will be subjected to an 18-month evaluation study, during which the processing of now applications will be temporarily discontinued. This is a part of a government-wide government-wide program, previously announced an-nounced by Secretary George Romney, Department of Hous ing and Urban Development. Farmers Home Administration Administra-tion (FIIA) will confine its subsidized housing loan program pro-gram this fiscal year to applications ap-plications that have been certified for approval between July 1, 1972 and Jan. 8, 19T3. Most construction under those approvals will occur during the coming spring building season. Unsubsidized home ownership owner-ship loans will continue to be made. It is estimated that there will be more than 100,000 housing loans for the fiscal year. The current interest rate on unsubsidized loans is 7 M percent. Mr. Rasmussen said the suspension sus-pension in subsidized housing will.be in effect for IS months to allow time for a comprehensive compre-hensive evaluation of the programs. pro-grams. The study will seek to determine whether the pro. grams in question are the most effective means available avail-able for providing benefits to low-income families, whether wheth-er the programs provide benefits ben-efits to persons other than low-income borrowers, and whether the Government's role in the programs is an appropriate ap-propriate Federal role. Housing programs affected bv the temDorarv diseontinu- subsidies. Housing repair loans to low-income families (loan maximum $3,500). Mutual self-help housing loans under the program whereby low-income families perform much of the labor in building their own homes. Grants to provide technical techni-cal aid organizations that assist as-sist in organizing and carrying carry-ing out self-help housing projects. pro-jects. Loans to non-profit organ, izations for development of rural komesite areas. Farmers Home Administration Administra-tion housing programs are ad- ance of new approvals are: Housing loans to low-income families that involve an interest subsidy. Subsidized interest rates to borrowers have ranged as law as one percent under the present program. Rental and cooperative housing loans. The farm labor housing program of grants plus loans at one percent interest. Th announcement specified ministered in rural areas, including in-cluding the countryside and towns of up to 10,000 population, popula-tion, and serve people of low and moderate income who find no other housing credit a-vailable. a-vailable. If you desire further information inform-ation contact their local Farmers Farm-ers Hom.o Administration office of-fice located at 10 North Main, Federal Building, Cedar City, Utah. that all applications in these categories that have been certified cer-tified for approval prior to the suspension will he processed through to loan or grant dis-bursement. dis-bursement. Housing programs of the Farmers Home Administration not affected toy the discontinuance discontin-uance announcement are: Housing loans to families of low and moderate income that do not involve interest |