HAC Awards $2.5 Million for Local Self-Help Homeownership Programs
Low-Income Families to Become Homeowners through Sweat Equity
Washington, D.C., February 3, 2012 – The Housing Assistance Council (HAC) is partnering with 12 organizations in 7 states to build 168 self-help homes for low and moderate-income families. HAC will provide financing for these projects using $2.13 million in funds from the federal Self-Help Homeownership Opportunity Program (SHOP), which is administered by the Department of Housing and Urban Development, and $375,000 from other sources.
Families participating in the SHOP program provide sweat-equity to construct their homes. "Homeownership continues to be an important housing option for low- and moderate-income residents. Self-help housing programs give families the chance to work together with their neighbors to build affordable, quality homes," said Moises Loza, HAC's executive director. "HAC is proud to have the opportunity to work with local organizations across the nation to help families pursue their goals of homeownership. The self-help housing model illustrates the huge investment of time and energy low-income homebuyers are willing to make to build their own communities."
Local affiliates leverage resources from a variety of private and public sources to provide this affordable housing opportunity to low- and moderate-income homebuyers. Many 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.
Since the inception of the SHOP program, HAC has been awarded funding to produce 8,490 units of affordable housing for families. HAC's local partners have completed 7,830 homes and are on track to finish 8,806.
About the Housing Assistance Council
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.
|Eastern Eight Community Development Corporation||TN||15|
|Foothills Community Development Corporation||TN||30|
|Frontier Housing, Inc.||KY||10|
|Hinton Rural Life Center||NC||6|
|Housing Development Alliance||KY||10|
|Inter-Lakes Community Action Partnership||SD||6|
|Kentucky Highlands Community Development Corporation||KY||4|
|Peoples' Self-Help Housing Corporation||CA||5|
|Rural Alaska Community Action Program, Inc.||AK||6|
|South County Housing||CA||30|
|Universal Housing Development Corporation||AR||10|