The New York State Division of Housing and Community Renewal (DHCR) enters into one-year contracts with the organizations it selects for funding under the Rural Preservation Program (RPP). These organizations are known as Rural Preservation Companies (RPCs). Administration of the program includes application review, contract negotiation and processing, monitoring for contract compliance through report review and site visits, and the provision of technical assistance to maximize the impact that funded companies have in their communities. To view a list of New York State preservation companies, click here.

Upon satisfactory performance of contractual obligations, grants are renewed annually. There are 72 competitively selected RPC's in the Rural Preservation Program as of July 1, 1997. The state appropriation for Fiscal Year '96-'97 is $4,860,000. 

RPP funds can be used to plan and administer a variety of capital projects including housing development (new construction) and rehabilitation of existing or vacant residential structures. 

RPP funds can also be used to administer and plan "soft-cost" preservation activities. These include: (1) housing management; (2) loan and grant application assistance; (3) homeownership financial counseling; (4) program assistance for other housing-related organizations; (5) tenant assistance; and, (6) other activities to preserve and promote housing in low income depressed areas. 
In many cases, RPP funding is the primary source of support for these activities, while in other cases it is only a component. 

Income Population Served
By law, the Rural Preservation Companies Program serves villages, towns and cities with a population below 25,000 that have significant unmet housing needs of persons of low income, defined as not exceeding 90 percent of median annual income for the region. 

Other Requirements
By law, the program funds must be matched by other funds equal to at least 33 1/3% of the RPP award amount. These funds must be used to defray the cost of the activities set forth in the contract and may be either cash contributions or services.

Funding Limitations
Under the law, grants are limited to $100,000 per year until a total of $300,000 is reached. Subsequent grants are limited to $65,000 until the program cap of $1.3 million is reached. Upon satisfactory performance carrying out its work plan and contractual obligations, grants are renewed annually. 

State governments in recent years have become increasingly important in funding housing programs, but in New York the state has taken a special role in helping to provide safe, decent and affordable rural housing. For almost two decades, the state has provided administrative funds for rural preservation companies, a network of community-supported, locally controlled, and economically efficient nonprofit agencies that has accumulated an outstanding track record in providing affordable rural housing services. The work of rural preservation companies has been cited as a program model that should be emulated by other states. The guiding strengths for this program include a strong commitment to developing affordable housing and collaboration across public and private sectors with a shared vision. 

History
The Rural Preservation Program was a strong seed planted during a time of great need for affordable housing in the Empire State. In 1980, after years of a worsening economy for upstate New York, after two energy crises, the continued flight of manufacturing jobs to southern states, and after years of neglect of an already old housing stock, the housing problems of rural New Yorkers came to the forefront. Based on an understanding of the potential human and economic value residing in rural areas, and what it would mean to New York to transform rural areas from what they were to what they could be, an initiative to halt the decline of rural communities was formulated in the state capital. 

As a result, Article XVII of the Private Housing Finance Law, enacted by Chapter 347 of the Laws of 1980, established a program through which nonprofit community-based organizations in rural areas of New York state receive limited public funds in order to perform housing preservation and community renewal activities. Those activities are defined in the law as "the acquisition, maintenance, preservation, repair, rehabilitation or other improvement of vacant or occupied structures where necessary or appropriate; disposition of housing accommodations for present or potential occupants or co-operative organizations; and activities, similar to those specified above, which are aimed at accomplishing similar purposes and meeting similar needs with respect to retail and service establishments within a region when carried out in connection with and incidental to a program of housing related activities." 

These nonprofits are called Rural Preservation Companies (RPCs). Pursuant to Article XVII, each RPC can receive a maximum of $100,000 annually until it has received a total of $300,000, and then $80,000 annually (this amount was increased from $65,000 by an act of the New York State Legislature during the 1998 Legislative Session. However, total funding for the program does not allow for groups to get more than the $65,000 stated above) until the group reaches a lifetime cap of $1.6 million (until 1998, the lifetime cap had been set at $1.3 million until an act by the New York State Legislature raised the limit). The money is for administrative purposes only and may not be used for capital investment or construction. Presently, proposals are being advocated which would both increase the annual aid from the state and remove the lifetime cap. The latter is a critical initiative as several RPCs will reach their lifetime caps in 1998, and therefore will cease to receive state funding. The program is administered by the state's lead housing agency, the Division of Housing and Community Renewal (DHCR). 

Economically Efficient
The Rural Preservation Program, the number of groups funded to perform affordable housing services, the counties served, and the state funds available have grown slowly but steadily since 1980. Today, with a network of 72 rural preservation companies in almost every county in the state, the program is the primary means for development and rehabilitation of affordable housing in rural areas. 

For 18 years, the State of New York has funded this unique state-wide program, thereby allowing RPCs to better carry out housing and community development activities in rural areas without worrying about how they will fund the administrative support to carry out their housing missions. As a management strategy, the state's support for RPCs indicates sound judgment. The economies of scale in rural areas are such that smaller housing projects are more prevalent, and development costs remain relatively high. Each project is different, subject to the desires and needs of the target population, and the practical realities of the location. Such projects may pose a higher underwriting risk or may be too small for participation in the state's Low Income Housing Tax Credit program, so private for-profit developers are often not willing to build them. With their unique financial support from the state and access to a variety of resources, RPCs have been able to find the means to provide the financial mechanisms to build affordable housing. 

With less than $5 million in administrative funds provided by the state each year, the network of rural preservation companies is able to partner with philanthropic organizations, for-profit firms, and other local community groups to acquire the financial tools to rehabilitate and build affordable housing. This unique partnership gives RPCs the ability to leverage multiple dollars for affordable housing development for every dollar provided by the state. Some government leaders have exerted that in a state with hundreds of social programs and a budget of over $67 billion, there is no program that does more with as little funding as the Rural Preservation Program. 

An analysis of 1995 data shows that while the state provided less than $4.5 million to RPCs, they were able to place 4,489 housing units in service, for a total of almost $44 million in housing production. RPCs also accessed new permanent mortgages valued in excess of $29.5 million for first-time home buyers, 65 percent of which originated through local banks and other conventional lenders. Through their counseling work, RPCs also saved an estimated $6.8 million worth of mortgages from foreclosure and administered over $37.6 million in federal Section 8 rental subsidies. 

Catalysts for Economic Growth
Through their affordable housing efforts, rural preservation companies have also become significant catalysts for the economic development of rural areas. Rural development is an important component of the state's social and economic health. The very nature and character of rural areas often present barriers: wide geographic distribution, limited transportation, and limited access to coordinated services. Many RPCs act as multi-purpose community developers or service providers, conducting other tangible activities such as economic development and job training programs. 

RPCs have clearly demonstrated their maturity and capability by leveraging significant amounts of federal and private funds and applying them to affordable housing and development projects in rural New York. RPCs are experienced, knowledgeable, and professional, focusing their energies on revitalizing their communities by helping to meet the demand for affordable housing and by assisting community economic development efforts. 

Data illustrate the substantial economic impact RPCs have in their communities. In 1995, RPCs leveraged over $100 million in federal, state, private, local, and other funds for rural communities across the state. They employed 2,622 people, which included workers in construction, maintenance, real estate, engineering, architecture, accounting, legal services and administration, and paid over $35 million in wages. They used the services of 4,100 local businesses and vendors, spending almost $13 million in their communities for office and maintenance supplies, utilities, insurance, and related services. Finally, they reported approximately 3,400 residential units owned with a total asset value in excess of $169 million while paying more than $2.1 million in real property taxes to municipal governments. 

The RPCs' dollars and cents benefits to their communities and, therefore, to New York state are significant and tangible. RPCs' work is more than just bricks and mortar. It is about safe, stable, and prosperous neighborhoods and communities. 

RPCs represent the ultimate demand/response system, and it works. It is state facilitated and locally implemented. There is no better example of state and federal efforts to downsize government and return some controls to local communities. In fact, a report issued by the National Housing Task Force suggested, "the federal government should encourage states to create and support local rural housing entities, such as the network of rural preservation corporations funded by the state of New York." 

Continued Need for Program Services
Safe housing is a precious right which many rural New Yorkers cannot take for granted. One-third of all New Yorkers with incomes below the poverty level live in rural communities. One out of four is a rural child. With over 40 percent of homes in rural areas built before 1930, the destructive combination of low-income and substandard housing continues to be a force affecting the lives of millions of New Yorkers. 

Recently both national and state organizations have documented the affordable housing problems facing New Yorkers. In rural areas, very low- income families are unable to afford decent housing. Others find that the cost of housing leaves little money for food, heat, clothing and medical expenses. Even families with moderate incomes find that inflation has far outstripped their earnings and that housing costs have placed homeownership far beyond their reach. Affordable housing programs such as the Rural Preservation Program provide part of the solution, but in recent times government's budget-cutting rush has tried to spare no program -- not even nationally acclaimed initiatives such as the state's network of rural preservation companies. 

The affordable housing shortages and rural economic decay that existed two decades ago still manifest themselves today, and are in desperate need of attention. Through the Rural Preservation Program, New York State has created a mechanism with which to begin to address these problems and RPCs have proven themselves useful in government attempts to beat back poverty. However, New York now needs to show a greater commitment to helping to realize the mission of the Rural Preservation Program. The need for both a real dollar increase in state funding for this program and the desire to not have the program included in suggested budget cuts year after year would be steps in the right direction. 

While the returns on investment by RPCs rival the best firms on Wall Street, the full potential of this rural affordable housing network has yet to be achieved, partly because year after year considerable human resources and time are spent trying to survive proposed state budget cuts. In the midst of political forces and bureaucratic management initiatives, the Rural Preservation Program has managed to survive proposed budget cuts that would have dismantled the foundation of this important program. 

The legislative wisdom that created the Rural Preservation Program is often tested in New York. As recently as 1997, the governor of the state proposed a 75% cut to the program. If enacted, this proposal would have effectively eliminated the program. Thankfully, the proposal was overturned by the state legislature. The effects of these political actions can easily be measured by examining the rate of success of accomplishing any measure of improvement in the quality of life in rural New York. There is still a need for affordable housing in rural areas. For every rehabilitated and new housing unit that is placed in the market, an older unit falls into disrepair and becomes uninhabitable. Population growth, aging trends, and other demographic shifts contribute to the problem of providing a safe, decent and affordable place to live. 

The Rural Preservation Program and the men and women who manage the network of rural preservation companies throughout New York are caught in an ever-changing world. Efforts to provide affordable housing are only as successful as long as the many factors that create the need are held constant. Over the years, the Rural Preservation Program's accomplishments have been many. However, the need for the program's continued existence and growth are still in demand. This program is the core of New York's attack on rural poverty and it should continue to be such because, as an affordable housing advocate put it, "you don't have to be a rocket scientist to know that you need to have strong towns, strong villages and strong counties to have a strong New York."