Federal Assistance for Single Family Homeownership Hearing Before the Subcommi
Federal Assistance for Single Family Homeownership Hearing Before the Subcommi
Finance United States Congress House Committee On Banki
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Losses from inventory sales in FY 1993 were 1. 7 percent of market value. That amount was 0. 02 percent of the program's outstanding principal. The true measure of Section 502 success is in human terms. A HAC five-year study of 849 households that received Section 502 loans in 1981 provided an actual measure of program accomplish- ment. * This case study, conducted in 20 geographically dispersed FmHA offices, found evidence that the participating households experienced significant improvements ...in their lives. For example, income increased by 27. 3 percent. At the seime time, annual program subsidy from FmHA decreased by $1, 332 over the five-year period. This HAC report documents the success of this program in terms of government goals and human achievement. (A summary of the report is attached to this testimony as Appendix A. ) MAC'S testimony is not meant to endorse funding for the demonstration at the expense of subsidized programs which serve iower-mcome populations. We remain advocates for the rural poor, ^ "Credit elsewhere" means that a borrower, because of insufficient income, has been unable to obtain mortgage credit in the private market.
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