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Owner-builders ready to begin homes in Carlton

September 19, 2005

Carlton, Oregon — As housing prices continue to rise and land acquisition becomes increasingly difficult, more local families are finding themselves priced out of the volatile housing market.

Indeed, Yamhill County residents are very ready for some good housing news — and a recent Rural Community Assistance Corporation (RCAC) loan to Yamhill Community Development Corporation (YCDC) is just that.

The $1 million loan will be used for site development of a 14.52 acre parcel of land located in Carlton where YCDC hopes to develop 43 residential lots to be used for a Mutual Self-Help Housing project.

Christened “Rolling Hills” the unique subdivision could eventually include more than three dozen 7,500 sq. ft. lots on which the Mutual Self-Help Program homes will be built over the next four years, providing desperately needed affordable housing for many area families.

In a Mutual Self-Help Housing Program, a group of eight to 12 low- and very low-income families and individuals work together under the guidance of a construction supervisor hired by a nonprofit housing developer such as YCDC. In lieu of a down payment, those in the program provide labor as “sweat equity.”

Homes in any given program are built simultaneously, with future owners providing at least 65 percent of all labor. No family moves into their new home until all in the program are completed.

Mutual Self-Help homeowners have mortgages that are generally far less than those of standard new or resale homes and the program — which has seen nearly 25,000 homes built since 1971 — boasts a delinquency of a mere 3 to 4 percent.

“We’re very happy to be able to provide YCDC with this loan,” said Mike Flanagan, director of RCAC’s Loan Fund. “The group is extremely well-run and made up of truly dedicated individuals.”

Since 1991, YCDC has been working to “pursue activities that strengthen and revitalize local communities by investing in low-income people through the creation of jobs, affordable housing opportunities, and supportive services.”

The group has been involved in several Mutual Self-Help Housing projects, completing nearly 100 area homes. The Rolling Hills project was recently approved by the Carlton Planning Commission and passed an appeal to the city council.

Although another appeal has been filed with the Land Use Board of Appeals (LUBA), Terry Larrabee, executive director of YCDC says off- and on-site infrastructure construction has already begun, easements obtained and roads cut. The group is hopeful their lengthy track record of building quality affordable housing as well as the needs of the residents of the community will help secure LUBA support.

“Yamhill Community Development is excited to be bringing self-help housing to Carlton,” said Larrabee. “The sense of community in Carlton will only grow as our builders and their families move into their beautiful, quality built homes and add much more to the community than tax dollars. I’m excited for our builder families and for the current community of Carlton. This is definitely a win-win situation.”

YCDC has qualified 11 families to be part of the first group of home builder-owners at Rolling Hills. Construction should begin sometime this fall. A second group of families will begin building their Rolling Hills self-help homes this summer. According to Larrabee, YCDC has, “many more applications in various states of approval for the second group of Carlton homes.”

Headquartered in West Sacramento, California, and serving 13 western states, RCAC is a nonprofit agency providing technical assistance, training and financing to rural communities seeking to develop a wide range of local services including, community facilities, affordable housing and water treatment facilities. In 1996, RCAC was designated a Community Development Financial Institution (CDFI) by the United States Treasury. RCAC maintains a field office in Portland, Oregon.

For more information concerning the Carlton Self-Help Housing Program project, contact YCDC at 503/434-5265 or visit the group’s web site at

www.yamhillcdc.com.

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