The USDA Self Help Model Extending your reach

The USDA Self Help Model Extending your reach to the nearly Unreachable.

Key Players USDA Grantees T&MA orgs Families

The Grant & the Loan • A Section 523 USDA Technical Assistance grant, for two years, is available to nonprofits, tribes or government entities. • Section 502 USDA loans are available to those at or below 80% of AMI. This is a one-step construction to perm loan.

The Grantee • • • Program management Staff Recruit eligible families Acquire suitable building sites Teach families to build their homes as a group • Track each family’s loan expenditures • Control & direct families & subcontractors

Families • Learn and hone new skills • Commit to minimum of 30 hours per week per household • Work cooperatively on all houses • Follow the direction of the Construction Supervisor • Review requests for payments to suppliers and subcontractors

Why • This program changes lives! • The participants have to be truly committed; have to learn to: Budget their time (and money) Set goals and achieve them Have pride in what they have accomplished Work together as a team Break many habits Make decisions as a team Endure: weather, setbacks, fatigue, etc. Succeed

USDA Instructions & Regulations • http: //www. rurdev. usda. gov/regs/ Instructions (1944 -I, among others) Procedure Notices Administrative Notices Handbooks and more

Two-stage Grant • Pre-development Grant ($10, 000) Feasibility Study Organizational Capacity/Experience Establish number of homes to build Determine land available Marketing plan to reach families

Pre-development (cont’d) • Preliminary program budget (2 year) Roughly 15% of a modest new home times the number of homes to be built $170 K X. 15=$25. 5 K X 16 yields a total 2 year grant of $408, 000

Full Grant Application • Recruit families- must be 80% of AMI or below, 40% must be at or below 50% • Secure buildable lots • Develop house plans, spec’s and budgets • Hire Staff • Package loans • Formulate Group Labor Agreement (Families must perform 65% of labor)

Construction • Construction Process – Train, supervise, schedule subs – Track Family Hours – Order Materials, track expenses – Quarterly Reviews with RD Funds used vs Budgeted Construction Schedule

Grant Closeout Five criteria: • Meet all 5 = Outstanding • Meet at least 3 = Acceptable • • • Number of houses actually constructed 40% very low income served Meet the 65% family labor requirement Did TA costs remain within budget Meet all other terms of grant agreement

Positive Results • Families learn lots of building skills • Families have neighbors that will watch their homes when they are away • Schools have a more stable enrollment • New jobs have been created due to amount of subcontract labor hired and material purchased • Families tend to be more participative in community • Neighborhood will be well maintained • Community receives more tax money • Families earn great deal of respect from community • Great deal of money flows through local economy

Four T&MA Contractors • Florida Non-Profit Housing, Inc. (FNPH) (863) 385 -2519 • Little Dixie Community Action Agency, Inc. (LDCAA) (580) 326 -5165 • National Council of Agricultural Life and Labor Research Fund, Inc. (NCALL) (302) 678 -9400 • Rural Community Assistance Corporation (RCAC) (916) 447 -2854

Move-in Ceremony