USDA RURAL DEVELOPMENT ACTS TO ASSIST DISPLACED
HOMEOWNERS, RENTERS, BORROWERS AND OTHERS
AFFECTED BY HURRICANE KATRINA

WASHINGTON, Sept. 2, 2005-Agriculture Under Secretary for Rural Development Thomas Dorr said
today the agency is moving quickly and decisively to assist those affected by Hurricane Katrina. An
assessment of Rural Development housing has identified nearly 800 vacant housing units near the
hurricane-affected area.

"Our state offices are identifying vacant housing units for the newly homeless and we're working to get
generators to the affected area. As far away as South Dakota our agency is finding shelter for hundreds
of people who are without homes," said Dorr. "We are offering assistance to our borrowers by
encouraging Rural Development homeowners in the affected area to get a six month moratorium
on their mortgage payments simply by asking for one."

Rural Development has also designated a toll free number to provide assistance to homeowners,
renters and others in need of housing assistance. That number is 1-800-414-1226. Information is also
available on the USDA web site: http://www.usda.gov.

Renters, individuals or families made homeless by the disaster may apply for occupancy at any other
apartment complex as a "displaced tenant." Applicants will be placed on a special list to be offered
any vacant unit, or the next one available if no vacancies currently exist.

For residents receiving rental assistance (RA) in units made uninhabitable by Hurricane Katrina, Rural
Development will allow the transfer of the RA to another eligible apartment complex. The transfer must
be agreed to by all parties and be designed for the return of the residents -- if they so choose -- and the
RA to the original complex and unit after the property has been restored.

Assistance is also being offered to those communities in the affected areas that have Community
Facilities loans and when requested, the Business and Industry Program will place a moratorium on
Intermediary Relending Program payments. In addition, an estimated 50 Rural Development "circuit
riders," who maintain and repair small sewer and water systems across the country, are being
dispatched to the disaster area to provide technical assistance to operators of sewer and water systems.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life
in rural communities. As a venture capital entity, Rural Development has invested over $54 billion since
the beginning of the Bush Administration to provide equity and technical assistance to finance and
foster growth in homeownership, business development, and critical community and technology
infrastructure. Over one million jobs have been created or saved through these investments. Further
information on rural programs is available at a local USDA Rural Development office or by visiting
USDA's web site at http://www.rurdev.usda.gov.


Lola J. Lucero
Rural Development Manager
phone: (307) 672-5820 Ext. 4 Fax: (307) 672-0052
Email: lola.lucero@wy.usda.gov

COMMITTED TO THE FUTURE OF RURAL AMERICA