Human Services News

Housing Assistance Council:

Low-income families will help construct their own first homes in rural places around the country, thanks to community-based organizations and the Housing Assistance Council, a national nonprofit organization that helps create affordable homes in rural America.

HAC will provide over $7.4 million in financing to 36 organizations in 17 states, using funds from the federal Self-Help Homeownership Opportunity Program -- which is known as SHOP and administered by the Department of Housing and Urban Development -- and other sources.

The funds will cover costs of pre-construction site preparation such as buying land, adding utilities, and conducting environmental reviews.

Community-based sponsor organizations will supervise homebuying families who work together in groups to construct their own homes and their neighbors'.

"Self-help construction is an amazing process," said Moises Loza, HAC's executive director.

Most of the families participating in HAC-aided SHOP projects obtain low-interest loans from the U.S. Department of Agriculture's homeownership program.

"Many pieces come together to make homeownership possible for families who would have trouble finding financing without their local self-help programs," Loza explained.

HAC's local SHOP affiliates can use up to $15,000 per home for eligible development activities such as buying land and extending utility lines.

When a local affiliate meets its loan requirements, including completing a certain number of homes, as much as 80 percent of the loan converts to a grant.

The group can use that money to create more affordable housing opportunities for low-income 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.