Where:
Kenai Peninsula, Alaska

Problem:
Lack of home ownership opportunities for low-income residents

Solution:
RCAC works with RurAL CAP to strengthen its U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program.

Rural Alaska Community Action Program (RurAL CAP) is a nonprofit organization that works to improve the lives of low-income Alaskans. One of the tools the organization uses is participation in the U.S. Department of Agriculture (USDA) Mutual Self- Help Program which provides home ownership options for low-income households. Participants in the program provide ‘sweat-equity,’ working 35 hours per week for a year to build their own and their neighbors’ homes in exchange for an affordable mortgage through the 502 Direct Loan program.

RCAC provides technical assistance and financing to nonprofit organizations like RurAL CAP 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.

In 2015, RCAC and USDA Rural Development presented a three-day National Section 502 Certification training course. RurAL CAP staff participated and passed the online exam. As a result, they are better prepared to package 502 loan applications. In two cases, applications that would previously have been denied were approved after staff identified problems and helped the applicants to correct them.

RurAL CAP has completed more than 50 homes through the Mutual Self-Help Housing Program. 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.