In 1935, the project was taken over by the Resettlement Administration which decided to develop 142 farming units of 20 acres each.  Ten dwellings and accompanying outbuildings were initially erected. 

In 1936, the Resettlement Administration was placed under the U.S. Department of

Agriculture.  Penderlea, along with other projects, was then shifted to the Farm Security

Administration.

In March 1936, options were secured on an adjoining 6,000 acres which was designated as the Penderlea Extension.  An additional 50 farming units were completed which accommodated 158 additional homesteads of 30 acres each, bringing the total to 300 units.  The cost per acre was $10.50.

A farmstead consisted of: a modern home equipped with a complete bathroom and running water; a barn, poultry house, A-type hog house, corn crib, and a combination wash and smoke house. 

Homes ranged in size from 4 to 6 rooms , depending on the size of the family.  Each home was supplied with electricity as well as with indoor plumbing.  This included an individual water supply operated by an electric pump and storage tanks for hot and cold water.  The houses were mounted on brick tiers and featured exterior siding of white creosoted cedar shingles with green shutters.  The interiors featured walls of 6- to 8-inch tongue-and-groove pine boards and Celotex ceilings.  The flooring consisted of scraped and oiled pine.  (The first 10 of the original 142 homes had oak floors in the living room.) Cost to build: approximately $1,700.

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