Washington, DC (December 11. 2007) – Congressman Rubén Hinojosa (TX-15) today announced that Proyecto Azteca and Community Development Corporation (CDC) of South Texas have been awarded a total of $185,000 to build homes for 15 low-income Rio Grande Valley families.
“The dream of homeownership continues to be out of reach for far too many South Texans,” Hinojosa said. “By supporting programs like CDC and Proyecto Azteca, we are making sure that this dream becomes a reality for more hardworking families. The innovative self-help strategies that these organizations advocate are powerful tools for increasing homeownership.”
Proyecto Azteca, which brings affordable housing to the Valley’s low-income colonia areas, will receive $110,000 to purchase 10 lots in the Indian Hills Colonia in Hidalgo County. Its unique method of housing assistance involves buying construction materials in bulk and helping families build their own homes. Families typically complete a minimum of 500 hours of sweat equity tasks, which include painting, dry wall installation, and finish work.
For the proposed Indian Hills project, lot costs will be approximately $11,000 and construction costs will be $30,000 per unit. Proyecto Azteca will provide $5,000 in down payment and a final mortgage amount of $36,000 per unit. It provides flexible 0% interest payments that are no more than 18% of the participant families’ average monthly income. This makes its houses affordable to households earning 34% of the local median income. Since 1991, Proyecto Azteca has financed and worked with more than 500 families in 57 Hidalgo County colonias in construction and first-time homeownership.
The Community Development Corporation (CDC) of South Texas will be receiving $75,000 to acquire five lots for a self-help housing development in Hidalgo County. This new funding will enable CDC to build homes of 1,300 to 1,600 square feet and sell developed lots to families for $17,500. The organization requires that all purchaser families to contribute at least 100 hours of sweat equity during construction. Over the last six years, CDC has constructed more than 50 new single-family homes in low-income rural communities in Hidalgo County.
The funding for the two organizations is supplied by the Housing Assistance Council (HAC), which is supported by the U.S. Department of Housing and Urban Development. HAC recently committed more than $6.4 million in loans to develop 430 units of affordable housing nationwide. Participating families are all required to contribute at least one hundred hours of sweat equity to help build their own home. This labor significantly reduces the cost of the units, making them affordable to low-income participants.