For years, Mountain Projects, a Community Action Agency in western North Carolina, has helped families build their homes through the USDA Section 523 Mutual Self-Help Housing Program. The model is familiar to many in rural housing; families come together, working side-by-side to construct each other’s homes, reducing costs and creating a deep sense of ownership.
But even the strongest models evolve. The rising cost of materials, labor shortages, and extended construction timelines have placed new pressures on self-help housing organizations nationwide. Mountain Projects saw an opportunity to modernize the process without changing its core mission.
That opportunity came in the form of modular construction.
In November 2023, Mountain Projects became the first self-help housing grantee in the country to successfully integrate modular homes into the USDA Section 523 program. The first three homes were delivered, set on their foundations, and turned over to participating families to complete their sweat equity work—painting walls, installing flooring, setting cabinets, and making the house their own. Three more are on the way.
This shift was years in the making. And it may be just the beginning.
A Training, a Factory Visit, and a Realization
By 2022, Mountain Projects had been thinking about modular construction for some time. They had already worked with Cardinal Homes, a modular home manufacturer in Virginia, on USDA Section 502 direct-financed homes. But bringing modular into the self-help model required deeper consideration: Would it meet USDA requirements? Could families still contribute meaningful labor? Would it actually save time and money?
In October 2022, staff from Mountain Projects attended a Housing Assistance Council (HAC) training on Smart Building Techniques. One of the stops was at Cardinal Homes, where the group observed the manufacturing of modular homes in a controlled environment, which allows for faster turnaround and fewer weather delays, with a quality comparable to traditional stick-built homes.
Attendees of HAC’s Peer Exchange in Richmond, VA tour the Cardinal Homes facility in October, 2022
The visit sparked conversations—not just among housing practitioners but also with Cardinal Homes’ leadership. Could modular self-help housing be a viable path forward? Was there an untapped business opportunity for manufacturers willing to adapt their process?
For Mountain Projects, the visit reinforced what they had already been considering. For Cardinal Homes, it opened the door to a new market. For HAC, it set the stage for a partnership that would help navigate the approvals needed to make it happen.
Making Modular Work for Self-Help Housing
The USDA Section 523 program is based on the idea that families can reduce the cost of homeownership by putting in their own labor. In the traditional model, that means participating in almost every step of construction—from framing and roofing to drywall and final finishes.
Modular construction streamlines home building by assembling the core structure in a factory setting and delivering it partially complete to the site. Families engage in crucial steps both before and after the home arrives. Initially, they prepare the site and lay the foundation, ensuring everything is ready for the arrival of the modular sections. Once the home is set, they participate in the final stages of construction, which include:
- Painting the interior and exterior
- Installing flooring and trim
- Hanging cabinets
- Installing fixtures
Mountain Projects, HAC, and USDA worked together to ensure that families would still meet program requirements while benefiting from the efficiency of modular housing. The approval process required flexibility, problem-solving, and coordination across local, state, and national USDA offices.
By late 2023, approvals were in place, and Mountain Projects was ready to launch the country’s first modular self-help housing initiative.
Housing Assistance Council
Rory Doyle