Where: Friday Harbor, San Juan County, Washington

Problem: There is an affordable housing shortage in the state of Washington

Solution: Rural Community Assistance Corporation provides technical assistance to Homes for Islanders to implement the U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program.

Homes for Islanders is a small nonprofit affordable housing organization located on San Juan Island, an isolated area in San Juan County where housing costs are high. San Juan County has the second-highest median home price of any county in Washington, next to King County. Furthermore, San Juan County has continued to languish at the lowest housing affordability index (HAI) score, which indicates whether a median income household can afford a median priced home, and the lowest first-time HAI score in Washington.

There is a great affordable housing need for working families. Commuting to and from the island is not feasible for the lower wage jobs that are required for the community to function.

Homes for Islanders implements the USDA RD Mutual Self-Help Housing program, which provides homeownership opportunities to low-income families, who work together to build their homes. The participating families provide 65 percent of the labor in the construction of their homes, reducing the overall cost and increasing affordability. These low-income homeowners receive affordable mortgages through USDA RD’s 502 Direct Loan program and start their ownership with the equity earned through their labor. The average home sales for San Juan County over the past month was $820,000, and Homes for Islanders’ self-help housing program homes average sale price is 35 percent of this average.

RCAC provides technical assistance to Homes for Islanders to administer its self-help program. In addition to ensuring compliance with USDA RD regulations, RCAC has developed regular networking calls for each of Homes for Islanders’ key staff positions. These calls have expanded the staff’s ability to connect with peers, a resource that is very difficult to find in isolated regions. RCAC has provided technical assistance since the creation of Homes for Islanders and has worked alongside the organization during personnel transitions, to submit grant applications and to overcome development challenges.