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Self-HelpSelf-HelpHousing 101 Housing 101
for Rural Developmentfor Rural Development
Self-HelpSelf-HelpHousing 101 Housing 101
for Rural Developmentfor Rural Development
Created by NCALL Research
Updated September 2007
Orientation 2
Who Is NCALL?Who Is NCALL?Who Is NCALL?Who Is NCALL?Began in 1955 as a legislative
advocate
In 1976 started our housing TA on the Delmarva Peninsula
Orientation 3
NCALL’s ProgramsNCALL’s ProgramsNCALL’s ProgramsNCALL’s Programs Self-Help Housing TA Housing Development TA Housing Counseling Rural Development Mortgage Packaging Financial Literacy
– Finanzas– IDA– Growing Your Money
NCALL Loan Fund Delaware Rural Housing Consortium
Orientation 4
NCALL’s Role in the NCALL’s Role in the Self-Help ProgramSelf-Help ProgramNCALL’s Role in the NCALL’s Role in the Self-Help ProgramSelf-Help Program
1983 - began a regional self-help contract through USDA Rural Development
NCALL provides assistance to potential and existing self-help housing grantees in 21 states
Orientation 5
Self-Help TA Services Self-Help TA Services NCALL ProvidesNCALL ProvidesSelf-Help TA Services Self-Help TA Services NCALL ProvidesNCALL Provides Application Training Program Planning Construction Scheduling Grants Management Staff Training Workshops Networking Opportunities Various Other Services
Orientation 6
NCALL’s Self-Help NCALL’s Self-Help RegionRegionNCALL’s Self-Help NCALL’s Self-Help RegionRegion
Orientation 7
NCALL ’s Self-Help NCALL ’s Self-Help Housing TeamHousing TeamNCALL ’s Self-Help NCALL ’s Self-Help Housing TeamHousing Team
Sherry DeZwarte – Housing Coordinator
Ulla Moore – Housing Specialist Lisa Spellman – Housing Specialist Mark Lasocha – Housing Specialist Don Pierce – Contracted Housing Specialist Jill Lordan – Contracted Housing Specialist Valerie Thompson – Program Analyst
Orientation 8
What is Mutual Self-What is Mutual Self-Help Housing?Help Housing?What is Mutual Self-What is Mutual Self-Help Housing?Help Housing?
A method for achieving homeownership
Families working together
Affordable homeownership loans
A private non-profit or local government sponsor
Similar to the church and barn raising of the Amish and Mennonites
Rural Development began funding mortgages through their 502 program in the 1960’s
In 1971 Rural Development began the 523 Grant Program
41,098 homes have been successfully built through this method and financed by 502 loan program (through FY’06)
Currently 125 grantees nationwide
At one time, all 50 states have participated in the Mutual Self-Help Program
Orientation 11
Merits of Self-Help Merits of Self-Help HousingHousingMerits of Self-Help Merits of Self-Help HousingHousing
Affordable, comfortable and attractive homes
Uses the best most affordable financing around
Reduced mortgage – saving an average of $29,455 in FY’06
Improved opportunity for value appreciation and equity growth
Participants learn valuable skills
Builds strong neighborhoods and communities
Orientation 13
Three Necessary Three Necessary ElementsElements Three Necessary Three Necessary ElementsElements The participants supply the needed
labor
Rural Development provides the 502 and 523 funds
Housing corporations organize and assist the families
Orientation 14
Grantee Grantee ResponsibilitiesResponsibilitiesGrantee Grantee ResponsibilitiesResponsibilities
Recruiting participantsConducting pre-construction
meetingsLocating suitable building sitesSelecting house plansPreparing cost estimates
Assisting participants in applying for a 502 loan
Subcontracting work on the participants’ behalf
Supervising and training participants in the construction of a group of homes
Supervising the participants’ 502 loan funds
Orientation 16
How the Homes How the Homes are Builtare BuiltHow the Homes How the Homes are Builtare BuiltFamilies work together in groups
of 4-10
Houses start and finish construction together
No one moves in until all of the homes are finished and approved
Work is done by the participants in the evenings, on weekends and days off
Families not willing to give up free time should not join a self-help housing group
Orientation 18
How long will it How long will it take to build the take to build the homes?homes?
How long will it How long will it take to build the take to build the homes?homes?The total process takes 12
to 16 months–3 to 4 months in pre-construction–8 to 12 months in construction
Orientation 19
Pre-Construction Pre-Construction Period Includes:Period Includes:Pre-Construction Pre-Construction Period Includes:Period Includes:Choosing house plansSelecting building sitesCompleting Rural
Development paperwork Awaiting loan approvalParticipating in Pre-
Construction Meetings
Orientation 20
Construction Construction PeriodPeriodConstruction Construction PeriodPeriod
Typical construction time: 1.5 months per house
6 houses = 9 months of construction time
Orientation 21
Family Labor Family Labor ContributionContributionFamily Labor Family Labor ContributionContributionFamilies contribute as much labor
as is required to complete ALL of the houses in the group
Generally each family contributes 30 to 35 hours each week
Family hours include the labor of either spouse and any child over 16 years of age
Orientation 22
Orientation 23
Family TasksFamily TasksFamily TasksFamily TasksFamilies must complete a
minimum of 65% of the construction labor tasks
Technical work such as foundation, plumbing, heating and electrical is subcontracted out
Families generally will do such tasks as:– framing– setting of trusses– roofing– insulation– sheathing– siding– windows & doors– drywall– painting– interior trim & cabinets – landscaping
The agency provides a construction supervisor on site to train and guide the participants
Orientation 26
Application StepsApplication StepsApplication StepsApplication Steps Pre-Application
– Proof of interested families
– Available, affordable land
– Organizational feasibility
Final Application
–Families 502 eligible
–Land secured
–Staff available
–House plans, specs & estimates complete
–Organizational readiness
Operating Grant
–Production of houses proposed within budget and time allotted
Orientation 28
Rural Development Rural Development Section 523 Pre-Section 523 Pre-Development GrantDevelopment Grant
Rural Development Rural Development Section 523 Pre-Section 523 Pre-Development GrantDevelopment Grant
Purpose:
Provide an organization with financial assistance to prepare and complete the final application.
Terms:
Six months
Maximum of $10,000
Available only once for a defined area
Cannot be used for land options or building materials
Authorized Uses:
Staff salary, fringes and other office expenses directly related to work on the final application requirements
Obtain house plans, copying etc.
Advertising for eligible applicants
Orientation 31
Self-Help Technical Self-Help Technical Assistance GrantAssistance GrantSelf-Help Technical Self-Help Technical Assistance GrantAssistance Grant
Purpose:To pay administrative costs
associated with operating a self-help program
Terms:
Rural Development National Office reviews all grants
Grants may not exceed two years
Regional T&MA Contractors and Rural Development Area and State Offices must analyze
Orientation 33
Public BodiesRural TownsPrivate Non-Profit
Corporations
Who May Qualify Who May Qualify For A 523 GrantFor A 523 Grant
Orientation 34
Sample Self-Help Sample Self-Help HomesHomesSample Self-Help Sample Self-Help HomesHomes
A completed home in southern Maryland, sponsored by Southern Maryland Tri-County Community Action Commission.
Orientation 38
Orientation 39
Orientation 40
Orientation 41
USDA’s SupportUSDA’s SupportUSDA’s SupportUSDA’s Support
During National Homeownership Month in 2002, President Bush celebrated with a new Maryland self-help family.
Orientation 42
Orientation 43
Insert State SlideInsert State Slide Grantees GranteesInsert State SlideInsert State Slide Grantees GranteesCurrently NCALL is not working
with any potential groups in _State
name______ We would love to have a grantee
hereStates without grantees receive
priority funding
Orientation 44
Why _Why _(Insert State name)(Insert State name)______ ______ Should Want a Should Want a GranteeGrantee
Why _Why _(Insert State name)(Insert State name)______ ______ Should Want a Should Want a GranteeGrantee
Brings additional 502 funds into ______(State
Name)___________ (National Office set aside) The Mutual Self-Help program helps
serve VLI Non-profits assist RD with publicizing
programs and processing loans A conservative estimate of economic
impact is $7 for every $1 of affordable housing investment
Orientation 45
What Types of What Types of Agencies to Look ForAgencies to Look ForWhat Types of What Types of Agencies to Look ForAgencies to Look For
This program is difficult Experienced organizations and staff
– Have produced housing– Understand development and
regulations– Can access or develop land– Good community relations
Multi-funded agencies– Leveraged resources to offset
participant and agency costs
Orientation 46
Current ClimateCurrent ClimateCurrent ClimateCurrent Climate During FY ’07, operating grantees
funded at 60% Potential for 6 to 8 new grantees funded
with maximum grants of $250,000 Potential for 12 Pre-Development
grants Lobbying for increase in 523 and 502
funding
Orientation 47
OutreachOutreachOutreachOutreachPer our current contract, NCALL
outreaches to potentially interested organizations
NCALL will provide any interested groups with an orientation package, and assistance with feasibility
Orientation 48
NCALL Self-Help NCALL Self-Help StatisticsStatisticsNCALL Self-Help NCALL Self-Help StatisticsStatistics
Currently 19 grantees operating with 19 grants
3 predevelopment grantees 16 prospective grantees $29,455 average sweat equity in FY’06 Almost $13 million in 502 funds in FY ‘06 Over $5 million in 523 grants in FY ‘06
THE END