Where:
Clark, Cowlitz, Wahkiakum and Lewis counties, Washington
Problem:
Self-help housing agency needs assistance to develop a new self-help housing model to purchase and repair local homes
Solution:
RCAC provides technical assistance to develop this new twist on self-help housing
As a result of foreclosures during the economic recession, many homes in rural communities in Washington, some of which are government-owned, sit empty. New construction in these areas has not bounced back, and is often not an affordable option for low-income residents. RCAC and the Lower Columbia Community Action Program (LCCAP) see this as an opportunity to assist clients to purchase existing homes with U.S. Department of Agriculture (USDA) Rural Development financing, and create equity by undertaking most of the necessary repairs themselves.
RCAC worked with LCCAP and USDA Rural Development to develop new administrative systems for this use of the Mutual Self-Help Housing program. Tasks include helping to revise systems for housing rehabilitation assessments and grant agreements. RCAC is also networking with other Washington grantees, providing them with sample documents and descriptions of potential models.
“Age, availability, and cost of existing local housing stock make rehab a viable alternative to new construction for first-time, affordable homeownership,” said Michael Torres, LCCAP director. “This is a product that can significantly upgrade the property values in rural neighborhoods, reduce the inventory of blighted and foreclosed homes in a community, and make homeownership possible for hardworking families at significant cost savings and on a timeline that is much shorter than traditional mutual self-help new construction. It helps to have a partner like RCAC to develop this new line of business.”
RCAC has assisted LCCAP to be a successful Mutual Self-Help Housing grantee for more than 20 years. RCAC services have included training LCCAP staff to package home loans, meet program requirements, develop administrative systems, and construction scheduling, energy efficiency.
