 Peoples' Self-Help Housing
The Mission of Peoples' Self-Help Housing is to provide affordable housing and programs leading to self-sufficiency for low-income families, seniors, and other special needs groups on California's Central Coast.
Home Ownership Frequently Asked Questions
Mr & Mrs Muniz in construction of PSHH's 1000th self-help home in San Miguel
Below is a list of Frequently Asked Questions about the Self-Help Home Ownership program. Click on the questions to read our responses. Clicking on the  icon will return you to this list. For general questions about Peoples' Self-Help Housing, please click here. (Preguntas y Respuestas en Español)
Who is Peoples' Self-Help Housing?
Peoples' Self-Help Housing (PSHH) is a private community based non-profit corporation helping Central Coast families obtain affordable housing.
What is mutual self-help housing?
Mutual self-help housing is a group method of home construction for limited income families utilizing "sweat equity". Homes are constructed by individuals and families as owner-builders under the supervision of PSHH. Owner builders must provide mutual labor exchange in the construction of their homes. As a result, a substantial cost savings is realized and a strong sense of pride in ownership and community spirit develops.
Who can qualify for self-help housing?
Families who cannot afford to build or buy modest homes by customary methods. They must have reasonably good credit and have the ability to repay a loan.
What is the planning and building process?
Generally 10 families make up a self-help building group. With the help of PSHH, families form an informal association and agree to help each other build their homes. The families sign an agreement with PSHH and with each other for this purpose.
Does the family need construction experience?
No. PSHH provides a construction supervisor for each group of families. The supervisor teaches the families how to build their homes, orders materials, brings in the sub-contractors at the proper time, and sees that the homes are built in an efficient, workmanlike manner.
How much of the house does the family build?
The families do almost all of the construction except the plumbing, electrical, drywall and stucco work. Those jobs are sub-contracted to professionals.
How many hours does each family contribute?
A minimum of 40 productive family hours a week. "Family" hours include the labor of both adults and any child 16 years of age and over. "Productive" hours mean useful work is being done. Both men and women are expected to participate in the labor requirement. The family must also attend all pre-construction and construction meetings.
How long does it take to complete a home?
Generally it takes 3-4 months for loan application and approval, and 12 months in actual home construction.
When are the houses built?
Since most of the families in a self-help group work during the day, most of the work on the homes is done weekends. If a family is not willing to make this commitment, they should not join a self-help group.
Must the family have a man as its head of household?
No. Families with a woman as head of household may qualify as long as they can provide the required labor. Single applicants (male or female) must provide written verification that another adult has agreed to help them with the required labor. This person CANNOT be paid to help with the labor.
Are the homes well-built?
Completed self-help home in Los Pinos, Nipomo
Yes. In addition to the usual city and county building inspections, financing sources may also inspect the homes throughout construction.
How large are the houses?
The size of the house depends on the number of people in the family and the makeup of the family. Most homes have 3, 4, or 5 bedrooms and range between 1100 and 1550 square feet.
What assistance is provided by PSHH?
PSHH provides the following assistance:
- Preparing application for land and construction material loans from RURAL DEVELOPMENT.
- Holding meetings with the families at which the self-help program and subjects related to home ownership are discussed, including real estate taxes and homeowners insurance.
- Providing approved house plans.
- Preparing applications for building permits and ordering building inspections.
- Obtaining cost estimates for construction materials and required sub-contracting. Ordering materials and sub-contracting as needed during construction.
- Supervising and training families in proper construction methods.
- Paying all bills related to the homes (with family loan funds) and maintaining an accounting of funds for the families and Rural Development.
How much cash is needed?
To begin processing a loan a credit check is required. If you are approved for a loan you will need to purchase construction insurance and hand tools. The total is generally about $400 to $500.
Who provides the loan money?
Various lenders including USDA RURAL DEVELOPMENT provide the mortgage/construction loan. The loan covers the cost of the land, construction materials, and sub-contractors.
What are the terms of a Rural Development Self-Help Loan?
The loan term is 33 years. Current interest rates are subject to change but subsidies are provided that can bring the interest cost as low as 1%, depending on a family's income and size.
When do the payments start?
Monthly payments will begin when the home is completed or twelve months after the loan is closed, whichever comes first.
How much are the monthly payments?
Payments are determined based on the family's income and family size. USDA Rural Development reviews each loan every year. If the family's income has changed or the size of the family has changed, the payments will change. For example, if the family income has increased, it's possible the payment will increase. Before you sign the final loan documents you will know both the highest and the lowest amounts you would ever be required to pay.
What are the income limits?
Income limits vary by financing sources. For more information contact admin@pshhc.org.
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