Where: Orland and Thermalito, California
Problem: Low-income families and farmworkers lack access to affordable housing.
Solution: RCAC staff provides technical assistance through U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program and RCAC’s Loan Fund provides financing to purchase lots.
Community Housing Improvement Program (CHIP) became a U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program grantee in 1980, and since has helped more than 1,700 families to build their own homes. The organization provides services to an eight county area in Northern California; approximately one-third of the families served have been farmworker households.
RCAC provides technical assistance and financing to nonprofit organizations like CHIP to implement the self-help housing program. RCAC works with these organizations to resolve program management and program implementation issues and meet key performance milestones. RCAC’s Loan Fund provides financing so grantees can purchase lots that are sold to self-help participants.
During 2015, RCAC provided financing for two CHIP self-help projects. In Orland, 39 families will construct their homes in the Villa La Michele 3 project. RCAC’s Loan Fund provided a $1,873,500 loan to acquire the lots. In Thermalito, 14 families will construct their homes in the Calle Vista project. The loan fund provided a $528,400 loan to acquire the lots.
The Section 502 Direct Loan program enables self-help participants to leverage sweat-equity in lieu of a down payment to obtain affordable mortgages. RCAC staff will provide 502 loan packaging training at the CHIP office in March 2016. Both CHIP and USDA Rural Development staff will participate.
During 2015, families, nonprofit organizations and USDA across the country celebrated the 50,000 dreams of homeownership realized during the 50 years of the program.
