Housing loan program for Chaba victims

Typhoons wreak havoc every time they strike, and when Typhoon Chaba approached the Northern Mariana Islands, residents of Saipan were especially hit hard. Chaba’s high winds inflicted damage and destruction to buildings, flooding conditions to low lying areas and extensive power outages throughout the islands.

Beatrice Sablan, a 72-year woman living in Saipan, knows first-hand the damage typhoons can impose. Sablan, who lives by herself, was forced to move from her semi-concrete home due to serious damage caused by Typhoon Chaba.

Through relatives and friends, Sablan learned about the USDA Rural Development RH 504 loan program and applied for a loan to help get her home rebuilt. Sablan lives on Social Security and thought her circumstances would make it difficult to obtain assistance for the repairs needed for her home. However, based on her limited income and age, she qualified for Saipan’s first RH 504 loan and grant combination.

USDA Rural Development was able to provide Sablan with a 20-year loan at the very low interest rate of only 1 percent for a $20,000 loan. Additionally, Rural Development awarded Sablan a $7,500 grant through the Section 504 Home Repair Program. This program offers eligible homeowners, especially the elderly, on fixed or limited incomes an opportunity to improve their quality of life by ensuring their home is safe and functionally adequate.

Sablan’s son-in-law helped her hire a contractor to make the necessary repairs. For only $91.98 a month, this elderly lady was able to move back into her new concrete home and will feel much safer when typhoon season approaches again.

“The delivery of the housing programs in the Western Pacific is consistent with USDA Rural Development’s commitment to improving the quality of life for low-income persons in rural areas—one homeowner, one rural community at a time,” said Lorraine P. Shin, USDA Rural Development’s Hawaii State Director.

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested over $63 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. As a result, over 1.1 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.

On Saipan, for information on the Direct Loan and other Rural Development financing programs contact Don Étés. USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer. (PR)