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The states needed the power to make loans; to take, service, and enforce notes and security instruments; to purchase, hold title to, develop, and dispose of lands; to execute leases and various other contracts; and to handle a myriad of additional functions involved in the operation of a diversified rural rehabilitation effort.

To provide this authority, FERA authorized the establishment of legal entities in each of the states: not-for-profit organizations known as rural rehabilitation corporations.

This money, according to the Federal Emergency Relief Act, was to be used “to make grants to the several states to aid in meeting the costs of furnishing relief and in relieving the hardship and suffering caused by unemployment in the form of money, service, materials, and/or commodities to provide the necessities of life to persons in need as a result of the present emergency, and/or their dependents, whether resident, transient, or homeless,” as well as to “aid in assisting cooperative and self-help associations for the barter of goods and services.” To facilitate the administration of this new emergency relief program, the Federal Emergency Relief Administration (FERA) established a State Emergency Relief Administration (SERA) in each state.

At first, the SERA’s carried on the urban and rural relief assistance together and generally in two ways: 1) through direct relief grants, or 2) employment of individuals on work relief projects.

The following is a brief history of America's Rural Rehabilitation Corporations and the Founding of the National Association of Rural Rehabilitation Corporations taken from the State-to-State Awareness Notebooks.

This information is available in its original format in a Word Document for saving and printing.

Ropesville became a thriving community and no foreclosures occurred there until the mid-1980s. Arkansas, for example, provided adult education, day care for children (a very progressive effort in 1933), a school lunch program, public libraries, and other efforts which preceded the Great Society programs considered new thirty years later. The colony consisted of 500 individually-operated farms: each farm contained about 20 to 40 acres (totaling 15,144 acres) and used a lease-mortgage arrangement.

Business and public services were cooperatively owned and operated by the community.

An innovative approach adopted by the 1933 Congress was contained in the Federal Emergency Relief Act of 1933.Similar corporations were also formed in the territories of Alaska, Hawaii, and Puerto Rico.The rural rehabilitation corporations began to buy huge tracts of farmland which they subdivided into 40- and 60-acre plots, then mortgaged those plots to displaced farm families.Pine Mountain Valley Resettlement Community located near President Roosevelt’s Little White House in Warm Springs, Georgia, was one of the most extensive and well-funded projects of this type.Originally home to over 200 families, the community operated until 1945.

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Forty-five rural rehabilitation corporations were formed by 1935.

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