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United States Department of Agriculture Rural Development (USDA RD) Loan Program Acceleration (Foreclosure)


WHEREAS, USDA‑FmHA, now USDA‑RD, is the federal agency that makes loans to farmers and owners of low income rental multiple housing and labor housing projects in rural America; and

WHEREAS, USDA-RD systematically discriminates against black program participants, including farmers, homeowners and multi-family housing projects owned by African-Americans; and

WHEREAS, USDA-RD's acknowledged discriminatory practices is against African Americans and other minorities in its loan and other program areas evidenced by the February, 1997 Report entitled Civil Rights at the USDA; and

WHEREAS, discriminatory practices by USDA‑RD against African Americans have been subjective and include unjustified loan practices such as loan acceleration, and extreme oversight and control; and

WHEREAS, USDA‑RD Regulations FmHA(RD) 1955‑A. 1955.15 (d)(3)(i)(B) provides for the serving officials to demand full payment of the unpaid loan balances after giving notice to the borrower(s) that the loan is being accelerated and that no payment will be accepted unless state law prevents such action. On January 15, 1999, the MD‑DE state director made acceleration notice to the Somerset County Civic Association, Inc.,  African American owners of Greenwood Gardens Apartments thirty (30) units in Princess Anne, Maryland and did not disallow monthly payments; however, four days later, USDA-RD informed the Management Agent whom was never approved as agent by USDA-RD that monthly payments would not be accepted; and

WHEREAS, a Multiple Housing Management Handbook is given to the owner(s) of Rural Family Rental and Labor Housing projects, FmHA(RD) instruction 1955‑A. 1955.15(d)(3)(i)(B) is not in the handbook, thus making this authority‑secret; and

WHEREAS, the Maryland State Conference NAACP finds specific State law language requirements regarding loan acceleration unfair, unconquerably, subjectively administered and disproportionately affects African American participants; and

WHEREAS, the MD NAACP finds that elimination of such regulations as RD Instruction 1955‑A and 1955.15(d)(3)(i)(b) will provide for a fairer and objective administration of USDA‑RD programs.

THEREFORE, BE IT RESOLVED, that the MD NAACP State Conference of Branches strongly encourages the National NAACP Board of Directors to use the National Office influence to eliminate United States Department of Agriculture FmHA(RD) Instruction 1955‑A. 1955.15(d)(3)(i)(B); and

BE IT FINALLY RESOLVED, that the NAACP continue to work in opposition to United States Department of Agriculture‑Rural Development (USDA‑RD) discriminatory actions and practices against people of color.