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RCAC Self-Help Builder News December 2011 Volume 4, Issue 4 >
Self-help housing rehabilitation
In these troubled economic times, several grantees have modified their grants to include self-help rehabilitation. These several grantees provide useful knowledge about good self-help rehabilitation models.
Overview
Self-help housing rehabilitation is mentioned in passing in the program regulations. It is usually a negotiated technical assistance cost with U.S. Department of Agriculture (USDA) Rural Development (1944-I Section 407d) and the project does not have to be mutual in labor (1944.403l). The current grantees can demonstrate a cost savings and continue to treat each house as one Equivalent Unit, though the tasks may vary. The grantees featured in this article are combining the self-help rehab program funds with other funding sources to provide rehab to occupied-owner buildings. The program can also be used to do acquisition/rehabilitation. Acquisition/rehabilitation is currently being done in two other regions. Both rehabilitation and acquisition/rehabilitation can be good solutions to a housing need in a community. Both provide a cost savings to the government by use of significant family labor.
Self Help Home Improvement Project (SHHIP)
SHHIP is the oldest rehab grantee in the western region, and is based in Redding, California. SHHIP runs its rehab and new construction program separately. Over the years, SHHIP has done both an occupied/rehab and an acquisition/rehab, but currently only maintains an occupied/rehab program. Along with the 523 rehab program, SHHIP is fortunate to have a variety of additional funding sources for the actual construction. They use the Rural Development 504/502 funds, Community Development Block Grant (CDBG), Rural Development Housing Preservation Grant Program (HPG), Weatherization Program and funding from the state utility, Pacific Gas & Electric. When SHHIP did acquisition/rehab, they acquired U.S. Department of Housing and Urban Development (HUD) repossessed homes with CDBG funds and then used the HUD 203K program for additional purchase and rehab costs. Down payment assistance was provided from California Housing and Finance Agency. SHHIP maintains family labor requiring that 65 percent of the job be completed by the owner. In order to establish cost savings, SHHIP uses a materials estimator program and compares the costs as if contractors were completing the job. Current technical assistance costs are $8,250 per unit, and SHHIP has a grant to complete 40 units.
Campesinos Sin Fronteras
Campesinos Sin Fronteras has focused solely on self-help housing rehabilitation in Somerton, Arizona. It is one of four grantees in Arizona to operate such a program. From the beginning, its program and funding has been targeted to seniors. They use Arizona Housing Trust Funds (HTF), HOME, RD Housing Preservation grants, Rural Development 504/502 loans and grants, and RD 306c funds designated for Colonias. Campesinos Sin Fronteras is able to show a cost savings by having the families complete some of the labor, which is documented by a contractor quote or an estimate from its rehab specialist. Current per unit costs are $6,818 for 44 units.
Northern Rocky Mountain
Resource Conservation & Development Area
Based in Bozeman Montana, North Rocky Mountain RC & D partnered with the local housing rehabilitation program, Housing Resources and Development Council, to do self-help housing rehabilitation. Having access to the construction financing through the partner agency, the grantee matched its program funds to HOME, Housing Preservation and Rural Development 504 loans and grants. Again, actual contractor estimates, or a housing specialist in the partner agency assesses, the comparable cost and savings is calculated and documented from the family labor. Current costs per unit are at $5,246 in a grant for 36 units.
These are a few examples of how the rehab program is working in the western region. If you want more information, please contact RCAC for assistance.