Where: Snohomish, Washington
Problem: Low-income residents lack access to affordable home ownership opportunities.
Solution: RCAC’s staff provides assistance to Housing Hope through the U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program and RCAC’s Loan Fund provides financing for site acquisition.

To address the affordable housing shortage in many rural communities, RCAC provides technical assistance and financing to local nonprofit organizations like Housing Hope in Washington to implement the USDA Mutual Self-Help Housing program. RCAC works with self-help grantees to resolve program management and program implementation issues and meet key performance milestones.

In addition to program assistance, RCAC provides financing for self-help projects to support lot acquisition and development so families can build their homes. RCAC financed a $1.245 million loan to Housing Hope to purchase 14 finished lots in Arlington, Washington. The lots will be sold to low-income buyers who will construct their homes through the self-help housing program.

The loan from RCAC will help 14 families to own their own homes.

Under the self-help program, participants are required to provide at least 65 percent of the labor to build their home and their neighbors’ homes. They work 35 hours per week, in addition to their day jobs, for almost a year. This “sweat equity” is contributed in lieu of a down payment, creating an affordable mortgage. With RCAC’s support and financing, Housing Hope helps families achieve the dream of home ownership, building communities in the process.

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. In addition to the Section 523 Mutual Self-Help Program, the Section 502 Direct Loan program for the participants is vital to the success of the participant families.