West Sacramento, Calif. — Although a furious round of summertime home building has just begun in the Mat-Su, many low- and moderate-income area residents are now finding themselves priced out of the American home-ownership dream.
And, with the market value of homes in the borough rising 15 percent last year — and still climbing — many others have shifted their short-term home ownership goal to a long-term aspiration.
However, thanks to a $324,000 Rural Community Assistance Corporation (RCAC) loan, more than a dozen low-income Wasilla-area families will soon not only own homes, but homes they have built themselves.
The Alaska Community Development Corporation (Alaska CDC), which received the RCAC loan, will use the funds to purchase 16 cul de sac lots in a subdivision on the outskirts of Wasilla.
There, the organization plans on constructing eight “self-help” homes this year, and eight more next year.
In a Mutual Self-Help Housing Program, a group of eight to twelve families and individuals work together under the guidance of a construction supervisor hired by a nonprofit housing developer such as Alaska CDC. No stranger to self-help projects, Alaska CDC last year completed nine such homes on land located a block away from the new project site.
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.
“Alaska CDC is happy to partner with RCAC to help build the community and to help families realize their dream of home ownership,” said Pat Shiflea, executive director of Alaska CDC.
On average, existing Wasilla homes now sell for about $186,000 while new homes in the area — of which more than 1900 were built last year — have an average purchase price of more than $208,000. In the case of the Wasilla homes, new owners will carry a mortgage of about $124,000.
The new Wasilla self-help homes will range in size from 1400 to 1500 sq. ft. and will include attached garages. The homes’ exteriors will be similar to those of other homes in the subdivision.
Many families participating in the self-help project have already been selected and are in the process of qualifying for their home loans, but Alaska CDC officials say they are still recruiting additional families — especially for the second phase of the project.
“More and more hard-working American families simply cannot afford to purchase their own home,” said William French, RCAC’s chief executive officer. “RCAC is dedicated to providing loans for vital organizations working to help these deserving families achieve the dream of home ownership.”
Established in 1979, Alaska CDC’s mission is to ensure that decent and energy efficient housing is available to low- and moderate-income Alaskans by aiding in energy conservation, weatherization, rehabilitation, construction and financing of housing. It is a membership organization whose affiliates are organizations, individuals and groups that support the goals and mission of the corporation.
Headquartered in West Sacramento, California, and serving 13 western states, RCAC is a nonprofit agency that provides technical assistance and training to rural communities seeking to develop a wide range of local services including, community facilities, affordable housing and water treatment facilities. The organization operates a loan fund with $50 million in lending capital that provides low-interest loans and grants to further rural communities’ goals. RCAC has offices in Fairbanks and Anchorage.