The U.S. Department of Agriculture is changing the way it defines rural communities, a move that could shut out residents in 923 California cities — including seven in Fresno County — from accessing its rural housing programs.
On Oct. 1, the USDA will start using population statistics from the 2010 Census to determine if a city or community is rural. Those areas with a population of 10,000 people or less, or fewer than 20,000 people if located in a metropolitan statistical area, will be considered rural, the USDA said.
The department has been using 1990 population statistics, under a grandfather clause, to determine eligibility. That clause, which set the rural population at 25,000, will expire this year unless Congress extends it or takes some sort of action, the USDA said.
Under the new rule, Fresno cities like Coalinga, Kerman, Kingsburg, Mendota, Parlier, Reedley and Selma would no longer be eligible for the program. Another eight cities in Kings, Madera and Tulare counties would also lose the federal help.
Last fiscal year, the USDA distributed more than $53 million in home loans and home repair programs to moderate- and low-income Fresno County homebuyers and homeowners.
“For a lot of families these programs are the only options they have for purchasing a home,” said Sarah Marquart, public affairs specialist for the USDA. “It’s unfortunate to see a lot of these communities not be eligible any longer.”
For nonprofit housing agencies like Self-Help Enterprises of Visalia, the rule change could have a devastating effect.
Over the last 10 years, Self-Help has built more than 80% of its homes in the Valley cities that are slated to become ineligible. And most of the agency’s homeowners use the USDA direct loan program.
Under the new rule, “the families that participate in our program would not have access to the best direct mortgage available,” said Tom Collishaw, vice president of Self-Help. “And Self-Help would not be able to use the grant it received from the USDA to help people. Suddenly we wouldn’t be able to help people in those areas.”