Where:
Coachella, Riverside County, California

Problem:
The complex packaging and approval process for U.S. Department of Agriculture 502 Direct loans can delay loan processing and home construction for Mutual Self-Help Housing grantees.

Solution:
Rural Community Assistance Corporation (RCAC) organized a daylong workshop on 502 loan processing for the benefit of Coachella Valley Housing Coalition (CVHC) and U.S. Department of Agriculture (USDA).

The relationship between CVHC and RCAC goes back three decades. RCAC was the original technical assistance provider to CVHC when it became a nonprofit in 1982 and began participating in the U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program. CVHC has been instrumental in providing affordable housing to Riverside, Imperial and San Bernardino counties. The organization has constructed more than 4,000 multi and single-family residences since its founding in 1982.

The USDA Section 502 Direct loan program is the cornerstone of CVHC’s housing development, and timely loan processing is critical. The underwriting process for 502 loans is complex, and loan applications would often require timely revisions from USDA Rural Development. The possibility of delayed loan processing and home construction became a real concern.

RCAC took note of the need to increase communication between CVHC and USDA and organized a day long training in Coachella. The RCAC trainer who led the workshop is a Section 502 Direct loan expert who travels the country as part of a USDA training team. Staff from both CVHC and USDA interacted with each other, putting both organizations on the same page with some of the broader areas of underwriting policy that were open to interpretation.

CVHC continues to build affordable housing under the 502 Direct loan program, its current waiting list for the self-help program exceeds 10,000 applicants. By reducing the time it takes to process loans, RCAC helps to ensure more families can achieve their homeownership dreams.