SELF-HELP

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Mutual Self-Help Housing

RCHDC is a charitable, non-profit, public benefit corporation established in 1975 for the purpose of providing affordable housing for low and moderate-income persons. We do not collect any fees from the homebuyers, builders or property owners. We are paid through a contract from USDA Rural Development.

RCHDC has successfully completed self-help projects for over 250 families on the North Coast. The agency administers the self-help program for the following counties: Lake, Mendocino, Humboldt, and Del Norte.

We are currently developing or building self-help projects in the following communities: Fort Bragg, Ukiah, Upper Lake, Clearlake, and McKinleyville.

The building program of RCHDC meets or exceeds all local and national building codes.

RCHDC has extensive experience working with local, state and federal agencies and officials in self-help projects. This has included working with planning commissions and elected officials in order to guide housing projects through the maze of requirements.

Here you can also watch Building a Dream - an introduction to RCHDC now available from this site. This is a 12 minute video that will familiarize you with RCHDC and Self-Help Housing. To view it you will need a recent version of windows media player. For non-windows platforms a larger MPEG version is available here (220MB).

What is Self-Help Housing?

The Self-Help Housing Program is designed to provide housing for families who would not otherwise qualify for conventional home financing.

RCHDC works with United States Department of Agriculture/Rural Development (USDA/RD) to recruit families who are eligible for 502 low-income loans. RCHDC then submits the loans for approval by USDA/RD. Once qualified applicants have been selected, they form an association to build all homes within a previously approved subdivision.

RCHDC provides a construction foreman. He orders materials, instructs applicants in construction skills, and oversees the program to assure a modest house is built to approved plans. Each family agrees to work a set amount of time (40 hours) each week in building their homes. They receive technical aid and instruction in the various skills required. On completion, each family gains equity in their home due to their investment of labor. Payments on 33 or 38 year loans are adjusted to the family income.

Who Qualifies?

A single person or a complete family may qualify.
Income must not exceed 80% of median income guidelines for the county.
Must be unable to qualify for a regular home loan from conventional sources.
Must have good credit.
Must have enough income to pay the monthly mortgage payments, which include property taxes and insurance.
Must have stable and dependable income.

What Will Expenses Be After Moving In? (You are now a homeowner)

You will not make any payments on the loan until thirty days after final inspection of the home or fifteen months from the start of construction, whichever occurs first. After moving in, you will make the following payments:

Regular installments on your loan.
Utilities, such as: gas, water, electricity and telephone.
Property taxes and insurance.
Maintenance and repairs on the home.

Who Will I Work With and How Much Money Do I Need?

You will work with a group of families building their own home. You will work together as a group on all of the homes. The group usually consists of 8-12 families. The work is under the supervision of an experienced foreman who shows you and the others how to do each phase of the work.

You must build at the same rate. Each phase of construction is completed on each house in the group before going on to the next phase of construction. The group elects officers and holds regular meetings. It is important for the success of a project that families work together as a group.

You pay cash out of pocket for credit reports and course-of-construction insurance before construction begins. In addition you will pay some property taxes during the course of construction on the homes.

What Are The Terms of USDA/RD Self-Help Loans And What Can They Be Used For?

The loans are for 33 or 38 years. Loans are based on the current rate of interest, but subsidies may be provided that can bring the interest cost to as low as 1% depending on the family size and income. USDA/RD loans can be used for the land, title, insurance, materials and any sub-contracting that may be necessary.

What Kind of Homes Are Built?

Conventionally designed, homes are of stick frame construction and vary in size based on each family's needs. From 3 bedroom to 4 bedroom homes, with 1.5 or 2 baths, 2 car garage, they meet all local government codes and comply with USDA/RD lender requirements. No changes are allowed to the house designs.

When Are The Homes Built?

Because most of the family members work during the day, construction time is usually performed in the evenings and on weekends. If the family is not willing to give up many of their free evenings and weekends during the construction of the homes, they should not join a self-help group.

How Long Does It Take To Complete the Homes?

Generally 10 to 12 months in construction. 5 to 6 weeks per home is used as a guide for construction time.

How Many Hours Does Each Family Contribute To The Construction of The Homes In The Group?

Generally, about 2,080 hours of labor per family is required (40 hours per week.) Family hours include the labor of the husband, wife, and any child 16 years of age or over. A certain percentage of the family hours may be performed by relatives or friends of the self-help family.

Do Families Need Construction Skills?

No. What is needed is the ability to follow instructions and complete tasks as assigned. Families work as a group of 8 to 12 families. They learn to lay out work, measure, saw, and nail the lumber, work with concrete, do plumbing and wiring, and perform other skills.