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RCAC loan provides eruption of opportunity in Castle Rock

July 17, 2006

Castle Rock, Wash. — The beauty and seclusion that makes Castle Rock (the “gateway
to Mount St. Helens”) such a tranquil destination for tourists and residents has
unfortunately not been able to shield this small community from escalating housing costs
and other economic pressures.

In fact, the Washington State Department of Community Trade and Economic
Development has labeled Castle Rock a “distressed community.”

However, a recent $253,000 loan from Rural Community Assistance Corporation
(RCAC) to the Lower Columbia Community Action Council (LCCAC) will soon allow
the local agency to provide 14 area families with the opportunity to build their own
affordable Mutual Self-Help homes.

In a Mutual Self-Help Housing project, groups of families and individuals work together
under the guidance of a construction supervisor hired by a nonprofit housing developer
such as LCCAC. 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 each building group are completed.

RCAC has been involved in the U.S. Department of Agriculture’s Rural Development
Mutual Self-Help Housing Program for more than two decades. Through Mutual Self-
Help projects, low- to moderate-income rural citizens attain the seemingly unattainable
goal of home ownership.

The new self-help project in Castle Rock will be built on an abandoned little league field
that is within easy access of the city’s award-winning trail and park system. The
development is considered “infill” as it falls within three existing residential
neighborhoods, one of which includes homes from an earlier self-help project.

“This is a wonderful opportunity for 14 families to build and own homes in a nice, rural
community,” said Ilona Kerby, director of LCCAC. “The people taking part in the project
will not be getting a hand-out, but rather a hand up. They’re hard-working people who
will work even harder during the 12 to 15 month project to build their own homes.”
With infrastructure installation set to begin in August, Kerby said she is hopeful the yetto-
be-selected families will be able to start home construction in October or November.
The 14 affordable, self-help homes will be built on 6,253 sq. ft. lots and average 1,400 sq.
ft. in size. The homes are expected to cost about $126,000 and will be affordable to
families earning as little as 41 percent of the area’s median household income — or about
$22,500 annually.

“RCAC is happy to provide these types of loans to organizations such as LCCAC,” said
Mike Flanagan, director of RCAC’s Loan Fund. “We know this project will benefit
Castle Rock and its residents and we’re happy to be a part of it.”
Headquartered in West Sacramento, California, and serving 13 Western states, RCAC is
a nonprofit agency providing 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 $63 million in lending capital that provides low-interest loans and grants to further
rural communities’ goals. RCAC maintains a field office in Lacey and Spokane.
For more information on the project, or to apply to become eligible for LCCAC’s selfhelp
project, contact the organization’s office at 360/425-3430 or 800/383-2101.

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