Twenty families in Guam will soon be first-time homeowners thanks to a USDA Rural Development Self-Help Housing Technical Assistance Grant. The Micronesia Community Development Corporation received a $512,417 grant to lay the groundwork for qualified low-income families to realize their dream of owning a home. The grant will assist in recruitment, screening, loan packaging and other related activities for prospective self-help housing applicants.
According to Chris Kanazawa, USDA Rural Development State Director for Hawaii and the Western Pacific, unlike traditional one-time event grant structures, this is a perpetual grant. As long as MCDC meets USDA guidelines, the grant can be received for many years to come. This will help additional families achieve home ownership through an anticipated long-term partnership, providing very-low to low income households with another path to first-time homeownership.
“This is a special project because it’s the first time we’ve had a mutual self-help housing program for Guam,” said Kanazawa. “Families will help build their own homes, reducing mortgage costs by up to 30 percent of the market price through sweat equity. This program will provide new opportunities for those wishing to purchase homes.”
With the median home price for a single family home in Guam at $225,400, Kanazawa said many families are not able to obtain a mortgage through conventional financing. Through the mutual self-help program and the MCDC, 20 families will soon be turning the key as first-time homeowners.
The project is also projected to create six direct jobs and 10 indirect jobs through construction.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.
USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Vilsack are committed to a smarter use of federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.