For the purposes of this initiative, the Lower Mississippi Delta is comprised of nonmetro counties identified by the Delta Commission as belonging to the Delta region in the three states of Arkansas, Louisiana, and Mississippi.

• The Lower Mississippi Delta is one of the poorest areas in the United States, with nearly a third of the population in Arkansas, Louisiana and Mississippi living in poverty. Of these, over 50 percent are African-Americans. The Delta is also characterized by a sluggish economy, high unemployment rates, and problems arising from a legacy of segregation.

• Despite numerous reports and studies, a comprehensive program for addressing the region’s needs has never been implemented, although several efforts are tackling pieces of the problem in one or more Delta states.

• A collaborative effort has been convened by the Housing Assistance Council (HAC) and the U.S. Department of Agriculture. This initiative pulls together existing expertise to create a comprehensive community development strategy for the Delta. It involves participation by all key Delta stakeholders through a consultative process.

• Participation in this initiative has encouraged Delta stakeholders to identify opportunities for developing collaborative solutions to the problems in the region. Key challenges to overcome include:
  • the difficulty of utilizing conventional lending products in the Delta,
  • lack of sufficient local capacity,
  • problems arising out of the Delta’s legacy of segregation, and
  • the lack of collaboration between ongoing efforts in the region.

• Delta initiative participants have also identified several approaches for replication throughout the region. They include models that have been successfully implemented in other areas of the U.S., as well as projects currently underway in the Delta. Most of them focus on creating credit enhancement strategies. Selected approaches involve:
  • creating a mortgage consortium to provide below market financing for homeownership,
  • establishing a community development financial institution,
  • encouraging housing finance agencies to serve as a secondary market for mortgage loans originated by nonprofits,
  • instituting a variety of lease-purchase programs, and
  • utilizing existing resources to create additional homeownership opportunities.

• In addition to suggesting ways to build upon existing successes, the Delta initiative participants have recommended several action items for the addressing the needs in the region. Together these recommendations represent a strategy for effecting positive change. By proposing a flexible strategy that can be updated and changed as recommendations are implemented, and new ideas and resources surface, participants are providing a blueprint for leveraging capital and other resources and delivering them to the rural communities of the Delta.

  The centerpiece of this strategy is the development of a Delta-wide collaborative effort to address local needs and problems, guided by local leadership from the Delta. Highlights of other recommendations are listed below.

  • The federal government, under the leadership of USDA, should create an interagency task force or committee on the Delta to maximize coordination between different federal programs and promote collaboration. USDA should also appoint a self-help technical assistance provider specifically for the Delta region.

  • The federal government should take a leadership role in developing peer consulting and training consortiums in the Delta. It should also direct a process for exploring the feasibility of creating a land banking system for the Delta.

  • Fannie Mae should designate the Delta as a priority area. It should earmark a certain portion of its finances for the Delta and should create mortgage products better suited to the conditions in the Delta. Private lending institutions should also explore ways to make credit more accessible to community development groups in the region, such as by creating lending consortium pools.

  • Philanthropic organizations should invest more resources in the Delta and focus on funding organizational development activities.

  • Various collaborators should help develop a regional communications network in the Delta utilizing telecommunications technologies such as the Internet.

  • HAC and other national and regional intermediary organizations should coordinate their training and technical assistance activities in the Delta. They should also set aside targeted monies from their loan funds for the region.