Location: Alamosa, Alamosa County, Colorado

Problem:  Low-income families lack homeownership opportunities

Solution: U.S. Department of Agriculture (USDA), Mutual Self-Housing Program and Rural Community Assistance Corporation’s (RCAC) Loan Fund provide options

The nation is in the midst of an affordable housing crisis and Colorado is not exempt. Community Resources and Housing Development Corporation (CRHDC), a USDA Section 523 grantee, has developed more than 1,700 affordable Colorado homes through the self-help housing program.

In the self-help program, participants work together under the guidance of a nonprofit public housing entity (self-help grantee) to build each other’s home. With a construction supervisor on site, these building groups perform at least 65 percent of the construction work required (known as “sweat equity”) to build all the homes. The sweat equity enables them to qualify for an affordable mortgage through the USDA Section 502 loan program.

RCAC staff provide technical assistance to CRHDC, working with the agency on all aspects of its Section 523 grantee contract, including developing strategies for marketing and community outreach for a subdivision in Alamosa, Colorado, which has an 8,780 population and a median household income of $27,850.

RCAC’s Loan Fund provided a $600,000 loan to CRHDC to develop 47 lots for this self-help housing subdivision, including self-help homes and manufactured housing that will be financed through Section 502 loans. These new units will help fill a need for affordable housing in this rural community.