Sweat equity is rewarded with building program

Published: 1/31/2014 8:16 PM | Last update: 2/1/2014 12:05 AM

Interfaith Housing Services has received a two-year, $360,000 grant from the U.S. Department of Agriculture to launch a mutual self-help new housing construction program in rural communities of less than 30,000 people.

"Basically it's designed to help qualified families build their own home at a lot lower cost because of their sweat equity," said Interfaith Housing Director Julia Westfahl.

Westfahl said the program is being launched in Lyons, where the city has donated building sites and waived permit fees, and Interfaith President and CEO John Scott said they want to launch a similar project somewhere in Reno County soon.

Westfahl said they want to build three to five houses on adjacent lots at the same time, so the future occupants can help each other build their houses by contributing 25 to 30 hours a week of labor, less if more than one family member is working.

No family takes possession of its home until all the families' homes are completed, Westfahl said.

Scott said that the family's sweat equity will reduce construction costs. When the house is completed, it may appraise at $140,000, but the family may need only a $90,000 mortgage to pay off the construction loan, leaving them with $50,000 in equity in their new home.

Scott said the family's labor on their house will work out to be worth about $30 an hour in savings on the construction cost and ultimately the reduction in their mortgage.

"That's a pretty good part-time job," he said.

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Sweat equity is rewarded with building program