HAC Awards $9.2 Million for Local Self-Help Homeownership Programs
Washington, D.C., November 7, 2011 – The Housing Assistance Council (HAC) is partnering with 32 organizations in 14 states and Puerto Rico to build 626 self-help homes for low-income families around the country. HAC will provide financing for these projects using more than $7.38 million in funds from the federal Self-Help Homeownership Opportunity Program (SHOP), which is administered by the Department of Housing and Urban Development, and $1.83 million from other sources.
Families participating in the SHOP program provide sweat-equity to construct their homes. “Despite the troubled economy, low-income families across the nation are still committed to becoming homeowners, and they are willing to make the physical and financial investment needed to make that dream a reality,” said Moises Loza, HAC’s executive director. “By working together, the families build a community as they build houses. They are incredibly dedicated – putting in long hours on weekends and evenings to finish their homes.”
Local affiliates leverage resources from a variety of private and public sources to provide this affordable housing opportunity to low- and moderate-income homebuyers. Most of the families participating in HAC-funded SHOP projects obtain low-interest mortgage loans from the U.S. Department of Agriculture’s homeownership program. By leveraging critical resources, including use of volunteer labor when possible, self-help housing producers are able to create affordable, sustainable homeownership opportunities for low-income homebuyers.
SHOP funds cover costs associated with land acquisition and infrastructure improvements. Community-based organizations will supervise homebuying families who work together in groups to construct their own homes and their neighbors’. HAC’s local SHOP affiliates can use up to $15,000 per unit for eligible development. They are responsible for all construction activities, including securing additional funding, preparing sites, training families, and managing the self-help process.
“Self help housing programs demonstrate what is possible when committed homebuyers, fair lending products, and effective community organizations work together to create sustainable homeownership opportunities,” stated Loza. Since the inception of the SHOP program, HAC has been awarded $102.1 million to produce 8,490 units of affordable housing for families.
A national nonprofit corporation headquartered in Washington, D.C., and founded in 1971, the Housing Assistance Council helps local organizations build affordable homes in rural America by providing below-market financing, technical assistance, research, training, and information services. HAC’s programs focus on local solutions, empowerment, reduced dependency, and self-help strategies. HAC is an equal opportunity lender.
Self Help Homeownership Opportunities Program Recipients, November 2011
|Crawford Sebastien Community Development Corporation||AR||19|
|Northwest Regional Housing Authority||AR||6|
|South Arkansas Community Development||AR||6|
|Burbank Housing Development Corporation||CA||60|
|Peoples' Self-Help Housing Corporation||CA||24|
|South County Housing Corporation||CA||30|
|Milford Housing Development Corporation||DE||4|
|Florida Home Partnership, Inc.||FL||67|
|Frontier Housing, Inc.||KY||10|
|Housing Development Alliance||KY||20|
|Kentucky Highlands Community Development Corporation||KY||6|
|Marquette County Habitat for Humanity||MI||7|
|Ozark Foothills Development Association||MO||10|
|North Carolina Indian Housing Authority||NC||5|
|Inter-Lakes Community Action Partnership||SD||15|
|Community Action Network||TN||10|
|Creative Compassion, Inc.||TN||5|
|Eastern Eight Community Development Corporation||TN||23|
|Lower Valley Housing Corporation||TX||60|
|Color Country Community Housing, Inc.||UT||20|
|Housing Authority of Southeastern Utah||UT||7|
|Mountainlands Community Housing Association||UT||8|
|Neighborhood Nonprofit Housing Corporation||UT||30|
|Rural Housing Development Corporation||UT||50|
|Community Housing Partners||VA||35|
|Helping Overcome Poverty's Existence, Inc.||VA||23|
|People, Inc. of Virginia||VA||5|
|Southern Appalachian Labor School||WV||4|