rural community assistance corporation rcac

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RURAL COMMUNITY ASSISTANCE CORPORATION

www.rcac.org

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Mission Statement: RCAC provides technical assistance,

training and financing so rural communities can achieve their goals

and visions.

RCACRCAC

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Programs & Services:

Environmental

Housing

Loan Fund

Comprehensive Community Development, Leadership and

Economic Development

RCACRCAC

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RCACRCAC

Incorporated 1978 as a spin-off from Self-Help

Enterprises

120 staff working in 13 western states

13 Board Members from 10 states

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RCACRCAC

Operating budget–$16 million

Assets $77.5 million, Net Assets $21.3 million (most of this is in the loan fund)


Environmental

www.rcac.org

The RCAP NetworkThe RCAP Network

Rural Community Assistance Partnership

800/321-7227 www.rcap.org

Western RCAP

Rural Community

Assistance Corporation

916/447-2854

www.rcac.org

Midwest RCAP

Midwest Assistance Program

952/758-4334

www.map-inc.org

Southern RCAP

Community Resource Group

479/443-2700

www.crg.org

Northeast RCAP

RCAP Solutions

800/488-1969

www.rcapsolutions.org

Great Lakes RCAP

WSOS Community

Action Commission

800/775-9767

www.glrcap.org

Southeast RCAP

Southeast Rural Community

Assistance Project

866/928-3731

www.southeastrcap.org

RCAC RCAC EnvironmentalEnvironmental

Why do this work

RCAC works with those communities and projects that serve low-income RCAC works with those communities and projects that serve low-income and small populations that do not have the resources available to help and small populations that do not have the resources available to help themselvesthemselves

Rural communities are at a competitive disadvantage when trying to secure Rural communities are at a competitive disadvantage when trying to secure funding to improve their infrastructure. funding to improve their infrastructure.

The cost of basic utilities in small communities is significantly greater than The cost of basic utilities in small communities is significantly greater than in larger communities. in larger communities.

Underserved populations are targeted through our technical assistance, Underserved populations are targeted through our technical assistance, training and access to resourcestraining and access to resources

Help communities achieve safe and reliable drinking water, wastewater and Help communities achieve safe and reliable drinking water, wastewater and solid waste systemssolid waste systems

RCAC RCAC EnvironmentalEnvironmental

What is TMF?What is TMF?TT stands for Technical and is the operations side of a water, stands for Technical and is the operations side of a water, wastewater and solid waste utilitywastewater and solid waste utilityMM stands for Managerial which is the management, board, council stands for Managerial which is the management, board, council and decision makersand decision makersFF stand for Financial which is the money side of the utility and its stand for Financial which is the money side of the utility and its assets and capital improvementsassets and capital improvements

TMF

RCAC EnvironmentalRCAC Environmental

RCAC’s clients are very small low-income communities, with RCAC’s clients are very small low-income communities, with populations up to 50,000 and median income levels around $30Kpopulations up to 50,000 and median income levels around $30K

Technical assistance is provided to tribes in most of our states, Technical assistance is provided to tribes in most of our states, especially in CA, AZespecially in CA, AZ

RCAC works with national organizations, state agencies, RCAC works with national organizations, state agencies, communities, tribes and Colonias to help build capacity through communities, tribes and Colonias to help build capacity through TMF TMF

Who are our clients?


Example Case Study Lower Rio Grande Public Water Works AuthorityLower Rio Grande Public Water Works Authority

Five water systems – eight Colonia communities south Five water systems – eight Colonia communities south of Las Cruces, NM along Rio Grande Riverof Las Cruces, NM along Rio Grande River

Water systems have water quality (Arsenic, Nitrate Water systems have water quality (Arsenic, Nitrate threats) and individual infrastructure capacity threats) and individual infrastructure capacity challengeschallenges

RCAC worked with all the systems to form a RCAC worked with all the systems to form a regionalization of all five systems and helped develop regionalization of all five systems and helped develop special legislation to form new water authorityspecial legislation to form new water authority

Under RCAP Technitrain funding, a fee for service Under RCAP Technitrain funding, a fee for service contract with and engineer and through a state contract, contract with and engineer and through a state contract, RCAC helped develop the framework of the new utility RCAC helped develop the framework of the new utility and a sustainable operating structure accepted by the and a sustainable operating structure accepted by the community.community.


Example Case Study – Cont’d Lower Rio Grande Public Water Works AuthorityLower Rio Grande Public Water Works Authority

RCAC helped develop the regional entity to develop:RCAC helped develop the regional entity to develop: Merger Plan – integration of assets, liability and personnelMerger Plan – integration of assets, liability and personnel Strategic Plan – identify and prioritize infrastructure development planningStrategic Plan – identify and prioritize infrastructure development planning Asset Management Plan – integrated all 5 system assetsAsset Management Plan – integrated all 5 system assets Financial Plan – includes budget, rates and reserve set asidesFinancial Plan – includes budget, rates and reserve set asides Personnel Plan – employee benefitsPersonnel Plan – employee benefits Governance Documents – legislative structure, rules and regulations, and Governance Documents – legislative structure, rules and regulations, and

policies and procedurespolicies and procedures Assisted with the development of the district designation and election policyAssisted with the development of the district designation and election policy RCAC assisted with the public outreach and facilitation to gain community RCAC assisted with the public outreach and facilitation to gain community

support.support.


We have national funding through RCAP which is includes USDA, EPA and a We have national funding through RCAP which is includes USDA, EPA and a small portion from Health and Human Services (HHS)small portion from Health and Human Services (HHS)

We have a large grant of HHS funding for work with the poorest and most We have a large grant of HHS funding for work with the poorest and most disadvantaged groups, which we compete for as an RCAPdisadvantaged groups, which we compete for as an RCAP

We have a large EPA contract to work with tribes in CA and AZ and hopefully We have a large EPA contract to work with tribes in CA and AZ and hopefully in NV in the futurein NV in the future

We have small and large state contracts under the EPA state revolving fund We have small and large state contracts under the EPA state revolving fund (SRF) that fund anything from water circuit riders in Hawaii, to most of the CA (SRF) that fund anything from water circuit riders in Hawaii, to most of the CA water and wastewater training and financial technical assistance and training in water and wastewater training and financial technical assistance and training in other statesother states

RCAC Environmental Funding


Housing

www.rcac.org

RCAC HousingRCAC Housing

Self-Help Technical Assistance RCAC has:RCAC has:

A contract with Rural Development to work A contract with Rural Development to work with self-help grantees in 11 states. with self-help grantees in 11 states.

Currently working with 55 grantees who are Currently working with 55 grantees who are implementing two year grants of nearly $55 implementing two year grants of nearly $55 million and expect to build 2,500 self-help million and expect to build 2,500 self-help homes.homes.

Self-Help Grantees receive RD funding under Self-Help Grantees receive RD funding under Sec. 523 to assist low and very low income Sec. 523 to assist low and very low income families in financing and building their own families in financing and building their own homes under the mutual self-help method. homes under the mutual self-help method.

Assist RD in managing self-help grants, advise Assist RD in managing self-help grants, advise grantees on RD requirements and regulations, grantees on RD requirements and regulations, and provide TA.and provide TA.

RCAC HousingRCAC Housing

HOME and CHDO TECHINICAL ASSISTANCE PROGRAM

Currently RCAC has contracts to work in 8 states, AZ, CA, CO, HI, MT, Currently RCAC has contracts to work in 8 states, AZ, CA, CO, HI, MT, NV, NM, and WY. NV, NM, and WY.

Received awards of about $900,000 annually for the past several years. Received awards of about $900,000 annually for the past several years. Goals: to increase housing production, build organizational capacity and Goals: to increase housing production, build organizational capacity and

ensure compliance with program regulationsensure compliance with program regulations HOME TA focuses on TA to the state recipients and sub recipients, also HOME TA focuses on TA to the state recipients and sub recipients, also

funds larger state-wide trainingsfunds larger state-wide trainings CHDO TA focuses on building CHDO capacity and specific HOME funded CHDO TA focuses on building CHDO capacity and specific HOME funded

projects usually one-on-oneprojects usually one-on-one

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Loan Fund

www.rcac.org

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Established in 1988

Currently Capitalized at $65 million

Designated CDFI

Approved USDA Guaranteed Lender

Offer Short term and Long Term Financing

RCAC Loan FundRCAC Loan Fund

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Loan Fund operations are self-supporting.

Revenue from interest, fees and investment income.

Try to maintain a spread of at least 250 basis points between our cost of funds and loan rates


2020


Sources AmountEquity * $17,713,415Bank $8,126,165 Federal Loans $6,327,295 Foundation $26,684,869 Non Profit $1,150,000Religious $4,400,000 LLC $700,000__TOTAL $65,101,744

*Includes $3,043,065 in temporarily restricted federal grants (CDFI Fund)

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Loan TypesSingle Family Housing

Multi Family Housing

Manufactured Home Parks

Community Facilities

Environmental Infrastructure: WaterWastewaterSolid Waste Systems

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Loan PurposeDevelopment Financing (Short term – up to 3 years)

Land acquisitionPredevelopment (arch, eng., etc) Site Infrastructure (streets, utilities, etc.)Construction (take-out source normally

required)Intermediate and Long-Term Financing

Community Facility Loans (USDA Guaranteed Loans)

Emergency Repair Water/Wastewater

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Loan Example:Loan Example: Borrower a non-profit Self Help Borrower a non-profit Self Help

Housing Developer in Utah proposing Housing Developer in Utah proposing to build 14 homes through the USDA to build 14 homes through the USDA Mutual Self Help housing program.Mutual Self Help housing program.

RCAC provided $1.4 million loan for RCAC provided $1.4 million loan for land acquisition and site development.land acquisition and site development.

Security – First trust deed on land and Security – First trust deed on land and improvementsimprovements

Interest reserve and loan fee included Interest reserve and loan fee included in loan.in loan.

Repayment of loan from the sale of lots Repayment of loan from the sale of lots to Self Help program participants. to Self Help program participants.

Affordable Affordable

HousingHousing


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Loan Example:Loan Example: RCAC made a $45,000 loan to a RCAC made a $45,000 loan to a

non-profit water association with non-profit water association with 23 members in central 23 members in central Washington. Level of copper and Washington. Level of copper and lead in water exceeds State Dept. lead in water exceeds State Dept. of Health limits. RCAC loan to of Health limits. RCAC loan to finance upgrade to the water finance upgrade to the water system to properly treat water. system to properly treat water.

20 year term, fully amortized, 5% 20 year term, fully amortized, 5% interest rateinterest rate

Security – assignment of revenues Security – assignment of revenues

Environmental Environmental

InfrastructureInfrastructure


Comprehensive Community Comprehensive Community Development and Leadership Development and Leadership

DevelopmentDevelopment Communities need more than water, Communities need more than water,

wastewater, solid waste and housing to be wastewater, solid waste and housing to be sustainable. RCAC works with and sustainable. RCAC works with and develops community leadership to address develops community leadership to address the community needs and create the community needs and create sustainable communities.sustainable communities.

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Questions?Questions?

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For more information visit For more information visit www.rcac.orgwww.rcac.org

Olga MoralesOlga MoralesTel: 575/382-6992Tel: 575/382-6992

Email: Email: [email protected]


rural community assistance corporation rcac

Documents

rcap rcap solutions

small communities

rcap community resource

colonia communities

ktechnical assistance

resourceshelp communities

themselvesrural communities

larger communities