MUTUAL SELFHELP HOUSING PROGRAM

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MUTUAL SELF-HELP HOUSING PROGRAM

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Training Agenda

• What is Mutual Self-Help Housing Prog.
• Parties Involved in the Self-Help Progr.
• Section 523 Technical Assistance Grant
• Benefits to Families Communities
• Disadvantages of the Program
• Frequently Asked Questions
• Self-Help Pictures

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What is Mutual Self-Help Housing Program?

• Mutual Self-Help Housing is a method of
  construction used to provide more affordable
  homes to low-income families through a sweat
  equity approach. It is a method by which a group
  of families, working together as a group help
  each other build their homes

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Parties Involved in the Self-Help Housing Program

• USDA Rural Development (list divisions)
• Non-Profit Organization
• Low and Very Low-Income Families

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Section 523 Technical Assistance Grant

• The United States Department of Agriculture
  (USDA) Rural Development provides technical
  assistance grants (Section 523) to non-profit
  organizations (two year grant) and finances the
  individual home loans (Section 502) to
  participants.

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Section 523 Grant

• To provide financial support for programs of
  technical and supervisory assistance that will
  aid needy, very low and low-income individuals
  and their families in carrying out Mutual
  Self-Help Housing efforts in rural areas. The
  length of a grant is typically two years.

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Eligible Uses For Section 523

• Hire Personnel
• Pay Office and Administrative Expenses
• Office Equipment, Supplies Telephone
• Construction Tools
• Staff Mileage, Training Meetings
• Legal, Licenses Dues

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Eligible Uses of Section 502

• Purchase Land
• Building Materials
• Subcontractors Labor
• Supplies

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Non-Profit Organization

• Develop the Pre-Application Application
• Recruit qualify families interested in sharing
  labor in the construction of their homes
• Help families prepare Section 502 loan
• Acquire and develop building sites
• Responsible for progress reports Audits
• Must maintain adequate operating records

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Non-Profit Organization (cont.)

• Help families select house plans, and obtain cost
  estimates for construction materials and
  subcontracting services
• Provide construction supervision and training for
  the families as they build their homes
• Educate and inform families about their
  responsibilities and obligations as homeowners,
  including discussion on loan payments,
  maintenance and upkeep of property

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Low and Very Low-Income Families

• Qualify for a Section 502 Mortgage loan
• Work with all of the families in the group to
  build each others homes
• Provide at least 30 hours of labor each week
  until each house is complete
• Abide by the program rules
• Perform 65 of house construction

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Benefits to Families and Communities

• Lower Housing Costs to Families
• Sweat Equity as down payment and avenue to
  homeownership
• Group Interdependence
• Neighborhood Stability
• Families Develop Basic Construction
• Families own new, safe affordable

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Disadvantages

• The Self-Help Method requires the continued
  cooperation of all participants
• No family can move in until all of the homes in
  the group are completed
• Working with other people can be stressful
• Regardless of the weather, families must stay
  motivated and keep working
• Thirty hours of labor per family, per week is a
  large commitment
• Homes are modest and no extras or custom building
  is allowed
•  

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Frequently Asked Questions

• How do families qualify for this program?
• Meet USDAs income guide requirements
• Have a good credit history or no credit
• Have the ability to make mortgage, taxes, and
  
• insurance payment
• Commit to work with the group and contribute
  30 hours of labor per week
• Be unable to secure a loan from any other lender
• Be 18 years of age or older
• Be a citizen or a permanent resident of the
  United States

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What is sweat equity?

• (Manual Labor hours required by the program)
• Savings to participants
• Down payment assistance
• Building Group Agreement

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Pictures From CHC La Clinica

• Open House Pictures
• Construction Pictures

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Thank you for your Attention!

• Presented By
• Christina Adeshakin