CDCB PROGRAMS

Mutual Self-Help/BootStrap Program

The Mutual Self Help/Bootstrap Housing Program creates homeownership opportunities for families earning 60% or less of the States Median Family Income. Six (6) to ten (10) families work together over eleven (11) months, sharing labor and skills to successfully complete each home, with each family moving into their new home after all homes are complete.

Participating families contribute their labor in building 65% of the new home for themselves and the other participating families (Sweat Equity). The “sweat equity” of each participating family reduces the loan amount for each home by as much as $12,000. 

In rural areas, USDA Rural Development 523 funding is provided to CDCB to fund on site construction supervision and program management.  CDCB has been awarded three 523 Mutual Self Help Grants totaling $809,000 and three HUD Loans totaling $750,000 for Self Help housing.

In rural areas, CDCB utilizes USDA/RD 502 loans originated to Self Help families, using a sliding interest rate based on income based on family income. Rates range from 1% to market rate and are adjusted annually based on income. In the City of Brownsville, CDCB utilizes State of Texas MRB Loan funds are used for permanent financing. Self help families are also able to access a 30-year, 0% interest, second lien mortgage of up to $45,000 per home through the State of Texas Bootstrap Loan program. Coupled with a first lien mortgage to cover the remaining loan amount, families pay under $550 PITI per month for their new home.

CDCB provides lots in each of its Affordable Housing Subdivisions for the Mutual Self Help/Bootstrap Program, as well as purchases lots for Self Help housing in area colonias. As of September, 2009, CDCB has started nineteen (19) self help groups, assisting 124 families averaging 14 homes per year.