About Us

Purpose and Terms of the New Mexico Rural Rehabilitation Corporation

The NMRRC is a 501 (C) (4) nonprofit organization. This corporation receives no funding from any outside source and is completely responsible for generating its own revenue.

At present the NMRRC provides low-income rurally-located home and agricultural loans. Escrow accounts are set up for the housing loans in order to pay their insurance and taxes annually. Agricultural borrowers are responsible for providing NMRRC proof of paid taxes and insurance annually on their farm property.

NMRRC has implemented a low interest Tuition Assistance Program. The purpose of the program is to provide low income rural students the opportunity to supplement any existing student loans or grants as needed to complete their education. The borrower is not required to provide any collateral for the loan; however, a creditworthy co-signer is required. Loans may only be used for actual tuition and registration fees and books, tools and equipment needed to complete the course. The student and co-signer must a New Mexico resident.

The Corporation also offers 4-H/FFA Special Projects Loans to assist young people participating in projects for the county and state fair the opportunity to purchase their animals. Funds are advanced to the borrower at a low simple interest rate. Repayment is expected within days of fair auction.

New Mexico Rural Rehabilitation Corporation History

In 1933, President Franklin Delano Roosevelt and the United States Congress founded the Federal Emergency Relief Act. This was a program designed to give aid to the millions of farmers and ranchers in the U. S. who were finding it increasingly difficult to make a living due to the great depression. Under this program, federal money was granted to private corporations to be disbursed to impoverished farmers and ranchers in an effort to keep this part of American culture alive.

In 1935, Rural Rehabilitation Corporations were established in 45 states. One-time federal grants were used to establish these corporations for use in rural areas and were to be overseen by the Federal Emergency Relief Administration. As a result of this, the New Mexico Rural Rehabilitation Corporation (NMRRC) was established.

In March of 1935, NMRRC began its rural rehabilitation by starting the Bosque Farms Project. This project consisted of 2,264 acres divided into 42 farmstead units ranging in size from 48.9 7 acres to 83.92 acres. Each unit generally consisted of an adobe dwelling, barns, poultry houses, and a Grade "A" dairy barn. Alfalfa was the principal crop produced, but the main source of income was from poultry and dairy operations. This project was developed and operated with funds provided by the Federal Government through the NMRRC.

In September of 1935, the Emergency Relief Administration became the Resettlement Administration, and the NMRRC--as well as other Rural Rehabilitation Corporations--were asked to transfer some of their money and property to the Resettlement Administration. This was to be done in trust for the corporations and was for management purposes only. The state corporations still owned the assets.

The Rural Rehabilitation Corporation Liquidation Act was passed by Congress in 1950 and became Public Law 499 of the 81st Congress. This law specified that the former Resettlement Administration, later known as the farmers Home Administration, was to return all of the assets to the state corporations that had been given to them in trust by the corporations. In 1958, the NMRRC--a private nonprofit entity--made application for and was granted the return of assets.

On September 27, 1974, a second amendment to the original Liquidation Act was passed by Congress giving the NMRRC sole proprietorship of its assets, funds, and property subject to the terms of a use agreement between the NMRRC and the Federal Government. The NMRRC is a completely private corporation, which is solely responsible for all its own management and growth and is subject to annual reporting and audit requirements by the United States Department of Agriculture under the terms of the use agreement between the two parties.

The NMRRC has been a member of the National Association of Rural Rehabilitation Corporations since its founding in 1971. Meetings of representatives from rural rehabilitation corporations were held that year in Biloxi, Mississippi, and later in Memphis, Tennessee, to officially form the national association for the purpose of discussing matters of mutual interest and finding new ways to assist people in rural areas of their home states.