By Myrna Trauntvein
Times-News Correspondent
Nephi may qualify for some low-cost housing for needy
families willing to invest sweat equity under the USDA
Mutual Self-Help Housing Program.
The program was presented at Nephi City Council by
several Six County Association of Governments employees.
Lynette Robinson, Six County AOG; Kenyon Ogden,
coordinator in the housing department; Julie Anderson,
administrative assistant; and Donna Birk, representing the
office of USDA Rural Development, were on hand to discuss
the potential of the program for the area.
"We have been sent out to communities with five
questions for each to answer," said Ogden. "Perhaps the most
important question is not one of the five, and that is,
after meeting with the SCAOG Housing Staff is whether or not
you feel community is interested at this time."
Fillmore council members were excited about the
possibility of being the community to qualify for nine homes
to be built in the next phase.
The five questions the council were asked to answer
and return to the Six County group were whether there was a
potential pool of applicants or families in the area that
may be able to afford a mortgage; how many developed
building lots were available within a five mile radius;
whether the community had access to a building inspector;
the proximity to a local lumber or hardware store; and
whether building nine new homes would put a strain on city
resources such as water, sewer, police, schools and other
services.
"The home cannot appraise for more than $147,000,"
said Ogden. But the home would have a two-car garage and a
basement and would fit into most neighborhoods as an
attractive addition.
Anderson said that mutual self-help housing would like
nine to ten families and individuals who would work together
as a group under the guidance of a construction supervisor
to build approximately 65 percent of their homes.
"This labor or "Sweat Equity" not only acts as the
down payment but can reduce the price of the home by as much
as 20 percent," said Anderson.
She said the key players are the USDA Rural
Development, the Six County AOG, the support of the
community, and the families who participate, she said.
"The USDA Rural Development provides grant funds to
run the program and pay staff salaries, to assist in
recruiting and determining participant eligibility, and by
providing mortgage loans for the families," said
Anderson.
The loans are repaid at 1 percent interest.
Anderson said the Six County AOG provides program
management and staff, recruits eligible families, finds
and/or develops land; and helps the families budget mortgage
payments.
Robinson said that there was a down payment assistance
program available which would provide up to $2,000.
"Self-help is a set aside program with 75 percent of
the funding coming from the national government and 25
percent coming from our office," said Birk.
Participation does require a time commitment on the
part of the participating families, Anderson said.
Families must provide income and credit to support a
mortgage payment of at least 1 percent interest for up to 38
years, must have a willingness to learn new skills, must
work as a team with other families, and must commit to work
30 to 35 hours per week for the next 10 to 12 months.
The community needs to be willing to support the
project by showing the availability of land, encouraging and
giving community support, and by providing access to a city
or county building inspector.
"The eligible families must be in place, the
applications ready and buildable lots ready in order for the
grant closing to take place," she said. The homes would need
to be located two or three per subdivision.
There are four or five floor plans available.
"None of the families move into their home until all
the homes are completed," Anderson said.
Everyone who participates must have the physical
capability of providing the sweat equity, said Birk.
"Single parents or those who have disabilities would
need to have parents or siblings who would be willing to
work on the homes of all those who are in the project
together, and not just the one home," she said.
Participants log their hours and develop skills. One
of the more successful project supervisors used by one group
who has completed a project was a teacher.
Ogden said that someone who baby sits for the children
of the families who are working also earns hours.
However, those jobs that require a licensed contractor
to complete will be contracted our.
"One group decided to have framers come in and do that
part of the job and then they did the sheet rock and other
projects to complete the homes," said Ogden.
This is the last area where the project is being
offered. There are several homes in Payson if council
members would like to see them, he said.
In the Unitah area four more phases are being planned
and an additional 16 to 18 homes are planned for this area,
said Ogden. The Six County Phase will be planned for three
to four areas.
Others outside the confines of Juab County who may
choose to live in Nephi may participate in the program which
may bring some of the young people who have left the
community back home to live.
"We want project participants to become successful
home owners," said Birk.
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