Self-help housing receives $1 million grant
Housing America Corp. has been awarded a $1 million grant to help meet housing needs for several low-income families in Somerton.
The grant was awarded through the Federal Home Loan Bank of San Francisco's Affordable Housing Program.
The funds will be used toward the cost of 50 single-family houses being built under the Mutual Self-Help Program's Desert Valley Estates Phase III subdivision. The funds will help 50 families achieve homeownership with affordable mortgage payments.
This is the second AHP award Housing America has received from the bank. An award of $360,000 in 2007 was used to help 30 families achieve homeownership.
Mutual Self-Help is a first-time homebuyer program that provides assistance to very low- and low-income individuals and families who are willing to build 65 percent of their own house. They earn sweat equity that can be equivalent to up to 10 percent of the house value, making homeownership affordable and attainable.
Each participant works with a group of 10 to 12 to build each other's houses. Participants are required to attend Pre-Purchase Counseling Education and Homeownership Education classes and commit to 40 hours of construction labor on weekends.
An onsite supervisor will train participants on each phase of construction process, which takes about 10 to 12 months to complete.
Participants are able to move in once all the houses of the group are completed and inspected by a USDA Rural Development representative.
Over the past 33 years, Housing America has provided families accessible and affordable housing in Yuma County. Under the Mutual Self-Help Program alone, Housing America has helped more than 1,064 families achieve homeownership in Yuma and Mohave counties.
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgage loans to people of all income levels. The bank also funds community investment programs that help members create affordable housing and promote community economic development.
