West Sacramento, Calif. — As a town within a city — a pueblo within a city really — Guadalupe, Arizona has, for nearly a century, managed to escape many of the problems of nearby metropolitan Phoenix…but not all.
Indeed, as in much of the nation, Guadalupe is in the midst of a housing crisis. And while the problems in this small, predominantly Hispanic and Yaqui Indian town are as unique as its unusual and rich heritage, the housing crunch in Guadalupe has left many residents unable to buy into the American dream of home ownership or trapped in substandard housing they cannot afford to improve.
However, with the support of a recent Rural Community Assistance Corporation (RCAC) loan, the Guadalupe Community Development Corporation, Inc. (GCDC) is working to provide a number of Self-Help affordable homes for local families.
The $475,000 RCAC loan will provide funds to complete infrastructure on a 4.72 acre tract of land in the Town of Guadalupe that was purchased last year from the Maricopa County. Twenty-three Self-Help homes will eventually be built on the property now known as “Colonia Estrella.”
RCAC has been involved in Mutual Self-Help Housing projects for more than two decades. 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 GCDC. 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.
Guadalupe’s residents pride themselves on their unique heritage (established at the turn of the last century by Yaqui Indians escaping slavery at the hands of Mexico’s Porforio Diaz and later joined by many Mexicans), and in fact, the small (5,300) community has been profoundly successful in maintaining its identity while the sprawling cities of Phoenix and Tempe have grown up around it.
But the town’s autonomy has also meant limited development and some economic frustration. A 1995 survey found 75 percent of housing in Guadalupe to be substandard. Earlier housing surveys had put the number at nearly 85 percent. Unemployment is also high — 11.4 percent in 2004 — and the median household income of $30,083 is well below the statewide average of $38,537.
Guadalupe officials are well aware of the disparities. In fact, GCDC operates in close partnership with the Town of Guadalupe, and is used to obtain money from funding sources that do not grant directly to municipalities. Committed, enthusiastic and innovative, community leaders in Guadalupe are using several funding sources — including the RCAC loan — to rehabilitate substandard housing and build new affordable housing in their community.
“The support from RCAC and the Town Council is a great example of the community putting resources together to create homes for our families now and in the future,” said Sally Gonzales, GCDC board president. “The funds made available by RCAC for this project are key to our success in developing beautiful homes, constructed by families who are literally putting a new face on affordable housing in Guadalupe.”
As housing prices across the nation have spiraled upward, RCAC has had more and more opportunities to provide a variety of unique loans to nonprofit organizations seeking to meet the ever growing need for descent, affordable housing.
“We’re very happy to loan funds to organizations like the Guadalupe Community Development Corporation and to be a part of the much-needed work of bringing affordable housing to hard working Americans,” said Mike Flanagan, director of RCAC’s Loan Fund. “Guadalupe is a wonderful town whose residents deserve this project.”
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 field offices in Tucson and Yuma, Arizona.