Washington, D.C., Feb. 12, 2009 – The Housing Assistance Council (HAC) will partner with 31 organizations to help more than 500 low-income families construct their own first homes in rural places around the country. HAC will provide financing for these projects using $6.7 million in funds from the federal Self-Help Homeownership Opportunity Program (SHOP), which is administered by the Department of Housing and Urban Development, and $1.9 million in other sources.

“Self-help construction is an amazing process,” said Moises Loza, HAC’s executive director. “By working together, the families build a community as they build houses. They are incredibly dedicated – they put in long hours on weekends and evenings to finish their homes. The average homebuying family in HAC’s SHOP program contributes 1,093 hours of construction labor.”

SHOP funds cover costs associated with land acquisition and infrastructure improvements. Community-based sponsor 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.

“Many pieces come together to make homeownership possible for families who would have trouble finding financing without their local self-help programs,” Loza explained. “As a result, self-help participants don’t have to rely on subprime and adjustable rate mortgages.” Since the inception of the SHOP program, HAC has been awarded $84.3 million to produce over 7,200 units of affordable housing for families.

“In this difficult economic environment, SHOP funding is especially important to our organization to bridge the affordability gap for the customers we serve. The opportunity to provide sweat equity not only allows our homebuyers to achieve the American dream of homeownership, but also provides an opportunity for them to invest in and build their own futures,” said Janaka Casper, President and CEO of Community Housing Partners (CHP). CHP, a long-time borrower and recipient of a 2008 SHOP grant from HAC, has helped low-income families all over Virginia secure decent housing.

Self Help Homeownership Opportunities Program Recipients, 2008

ORGANIZATION	ST	UNITS
Burbank Housing Development Corporation	CA	17
Clinch-Powell Resource Conservation & Development Council	TN	5
Coachella Valley Housing Coalition	CA	18
Colorado Housing, Inc.	CO	6
Community Action Network	TN	5
Community Concepts, Inc.	ME	6
Community Housing Partners Corporation	VA	40
Community Housing, Inc.	KY	6
Creative Compassion, Inc.	TN	8
Eastern Eight Community Development Corporation	TN	5
Florida Home Partnership, Inc.	FL	43
Frontier Housing, Inc.	KY	5
Hinton Rural Life Center	NC	6
Homes in Partnership	FL	47
Housing Development Alliance	KY	14
Low Income Housing Coalition of East Kentucky, Inc.	KY	5
Marquette County Habitat for Humanity	MI	5
Mennonite Housing Rehabilitation Services, Inc.	KS	27
Mercy Housing California	CA	14
Mountainlands Community Housing Trust	UT	8
Neighborhood Nonprofit Housing Corporation	UT	20
Northwest Regional Housing Authority	AR	5
People Incorporated of Southwest Virginia	VA	5
Proyecto Azteca	TX	9
Rural Housing Development Corporation	UT	39
Self-Help Enterprises	CA	38
South Arkansas Community Development	AR	12
Southern Appalachian Labor School	WV	4
Telamon Corporation	NC	5
Universal Housing Development Corporation	AR	15
Youthbuild McLean County	IL	9
Total		451

###

Founded in 1971, HAC 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.