Philip Do, a participant in the Housing Resources of Western Colorado’s Self-Help Homeownership program, describes plans for his backyard on Oct. 3, 2024, at his home in the Butner Estates subdivision in Grand Junction, Colo. The program helps qualified families who otherwise wouldn’t be able to afford house purchases build homes. Photo by Barton Glasser / Special to The Colorado Trust
Philip Do was catching up on some required work hours on a hot Saturday morning in late August at Butner Estates in Grand Junction, where he and seven other people were building their own and one another’s houses.
Do, 34, already had construction skills before joining the project and was further along on his house than his future neighbor Monica Evans. That morning, Do helped Evans with caulking on her house’s exterior. Inside, Evans and two other homebuilders mopped the concrete floor before applying another coat of sealant. Another homebuilder down the street was painting the interior of his future house.
Participants in the Housing Resources of Western Colorado’s Self-Help Homeownership program must contribute 30 hours a week at the construction site—on top of their paid jobs. A Housing Resources construction supervisor oversees the mostly inexperienced builders.
Since 1997, Housing Resources has administered the U.S. Department of Agriculture’s Mutual Self-Help Housing program in Mesa County. The program has facilitated the construction of 403 energy-efficient housing units for people who otherwise couldn’t afford to purchase homes.
“We have to work as a team,” said Do, a married father of two children ages 2 and 10. “We can’t move in until Monica’s house is done.”
Do’s family has shared a house with a friend for three years. They lease two of the three bedrooms for $800 a month plus utilities.
Evans, 46, a self-employed mental health therapist, is a single mother with two children, one who is 7 years old and the other now an adult. She said she didn’t qualify for a mortgage because housing costs and interest rates were too high.
Evans’ son played nearby while she worked on her house. He’s already made friends with a neighbor’s kids whose mother was also building their own home. Evans said her son was excited about the house and helped by sweeping and vacuuming. He had his room already picked out, she said.
“Housing stability is the best way to create generational stability,” Evans said. “I’m one of five siblings and the only one that owns a home.”
Monica Evans, a mental health therapist, sweeps on Oct. 3, 2024, after drywall was installed in her soon-to-be new home in the Butner Estates subdivision in Grand Junction, Colo. Evans is a participant in the Housing Resources of Western Colorado’s Self-Help Homeownership program. Those who qualify for the program must contribute 30 hours of labor per week to the construction of their new home. Photo by Barton Glasser / Special to The Colorado Trust
When Do first applied to the Self-Help Homeownership program several years ago, he was self-employed. He didn’t meet the eligibility criteria because his income was too low, and he lacked credit. He then began looking in the Grand Valley for houses for sale.
“The market was crazy, people were overbidding each other,” he recalled. “I didn’t want a fixer-upper, which was what was in my budget. I wanted a livable house right away for us.” In September, the average home price in Grand Junction was $402,274, up 3.7% from last year.
Do reapplied to the Housing Resources program in 2019 after he started working in construction and his wages had increased. By 2023, his annual income had grown to $50,000. However, Do still needed to establish credit, which Housing Resources helped him do via its homebuyer education classes.
He had never applied for a credit card or any loan. Housing Resources helps people establish credit and form a financial action plan. The nonprofit also assists people who need to increase their credit scores.
“If someone has a terrible credit score and gobs of debt, they have to start with counseling to learn basic financial habits like how to pay down debt, create a budget and deal with problems on their credit report,” said Emilee Powell, the Housing Resources of Western Colorado executive director.
Housing Resources recently received a Colorado Trust grant to bolster its Path to Homeownership program, including a mechanism to provide supportive financial incentives to clients. Powell said saving money while paying bills and experiencing rent increases can be daunting, so these incentives can go a long way.
“Once a person is on the path to homeownership, we want to give a small grant—sometimes called a ‘matched savings’ grant—to add to their savings,” Powell said. “It’s just that little boost that says, ‘You can do it. Keep going.’”
In addition to financial education and counseling, the program offers subsidized monthly mortgage rates and the opportunity to earn tens of thousands of dollars in sweat equity by the time the new owners move into their homes. Participants must meet income guidelines to ensure they can afford the mortgage while not exceeding 80% of the area median income. For one person living in Mesa County, the area median income is $46,050, adjusted upward depending on household size.
Once participants’ incomes are certified and they close on their construction loans, their incomes are not rechecked for program eligibility. Powell said Housing Resources hopes and expects clients to continue improving their financial situation, including earning more income. The USDA continues to certify the incomes of those receiving USDA-subsidized interest rates and adjusts rates accordingly. Powell said the deferred portion of the interest rate accrues as additional principal on the loan, which would get repaid if or when the client eventually sells or refinances.
Vicki Tromburg, 38, participated in a Housing Resources build in 2019-20. Tromburg has used a wheelchair since getting injured in a motor vehicle crash 30 years ago—an accident that killed her mother. Although living with a disability, the single mother of two teenagers said she was still able to perform various construction tasks, such as holding, cutting and measuring drywall.
As a result of participating in the self-help homebuilding program, Tromburg said she knows how to make many home repairs. “I don’t have to hire someone for every little thing,” she said. “As a female with a disability, it’s cool that I know what I’m talking about if I have to hire someone. I can talk to them in their language.”
At Butner Estates, homebuilders typically work a few hours after work, Tuesday through Friday, plus time on Saturday. Friends and family can volunteer their labor to help participants achieve their required 30 hours per week.
However, not everyone has outside help. Do said he occasionally falls behind on his hours, like the week his mother-in-law was hospitalized and he stayed home to care for his children while his wife was at the hospital.
“It’s hard. The hours are tough,” Do said. “I’m exhausted. We’re waiting for the finish line.”
Philip Do, a participant of the Housing Resources of Western Colorado’s Self-Home Homeownership program, repairs drywall in his home on Oct. 3, 2024, in the Butner Estates subdivision in Grand Junction, Colo. Photo by Barton Glasser / Special to The Colorado Trust
Self-Help Homeownership Program Manager John Gross and Construction Supervisor Wayne Miller teach participants how to paint, put up drywall, frame, set windows, install landscaping and other tasks involved in home construction. Housing Resources hires professionals for the dirt, concrete, plumbing, electrical and HVAC work.
“We try and figure out early on what people are good at,” Gross said. “The construction supervisor is responsible for teaching skills, recognizing who’s good at what and assigning tasks.”
For example, Do has previously worked on drywalls and insulation, so he typically leads drywall crews. Another homebuilder was a professional painter before becoming a schoolteacher, so he did most of the painting on this cohort of eight houses. Another homebuilder enjoyed and was good at sealing windows, so he did most of those for the group. Gross said the construction supervisor is also responsible for helping the group get along and be productive.
The current bloc of builders began in January 2023 and has taken nearly twice as long as most groups to complete their houses. Typically, builds take about a year to complete. One reason for the current project’s delay is that county building codes changed during the build.
“We follow the [International Energy Conservation Code] now,” Powell said. “Making homes wind- and seismic-safe adds complexity. It makes it go slower.”
People dropped out before the group could start, further delaying the process while Housing Resources sought to approve more applicants. Some participants have struggled to complete their required 30 hours per week.
“People come in with good intentions, but life happens, things change,” Powell said.
The USDA program requires participants start the build together, and no one moves in until all the houses are completed. This latest group of homebuilders is expected to finish their homes by the end of the year, resulting in 36 houses in Butner Estates. Thus far, all eight houses still need to be completed, as Housing Resources tries to move the homebuilders along as a group.
Builds also take longer than they used to because “our expectations of what a house should be has grown,” Powell said. In the beginning, the houses were smaller. These houses under construction are 1,300- to 1,500-square-foot homes with three to four bedrooms, two bathrooms and an attached two-car garage.
The federal Mutual Self-Help Housing Technical Assistance Grants program requires that subdivisions be built in rural areas, and Grand Junction and Clifton would no longer qualify with their increased populations, said Powell. The Butner Estates project, which began in 2016, was grandfathered in. Other nonprofit organizations administer the USDA program in areas near Alamosa, Cañon City and Fort Morgan.
In Mesa County, Housing Resources purchases the land, builds roads and sells the lots to the homebuilders. The USDA technical assistance grant covers the cost of Housing Resources’ work: developing plans, organizing subcontractors, getting bids, scheduling, ordering materials, paying bills and keeping track of clients’ work hours.
“Our target area is Garfield, Mesa, Delta and Montrose counties,” Powell said. “It’s in our strategic plan to serve those counties more. One of the challenges is we need to find finished lots with infrastructure—water, sewer. It’s harder to find modest-sized lots. It’s a challenge for us. It’s a long process. It takes a couple of years.”
The estimated average value for each of this current group’s houses will be $380,000. Powell said that if sold on the open market, with a 7% interest rate, monthly mortgage payments would come to approximately $2,500, plus insurance and HOA fees.
“In comparison, our clients get a 33-year mortgage with principal and interest coming to about $1,300 to $1,400 a month,” she said.
The USDA keeps maximum interest rates no higher than 4.875% and as low as 1% in some cases. Clients must apply yearly for the upfront lower rate, with the difference being tacked onto the back of the loan. Homebuyers also benefit from the USDA’s conversion of the construction loan into a mortgage loan, guaranteeing a mortgage under the same terms (interest rate, payback period, etc.) even if the client’s circumstances change during the building process.
Philip Do’s family members wrote their last name on the concrete slab, as shown in this Oct. 3, 2024, photo, at their home in Housing Resources of Western Colorado’s Butner Estates subdivision in Grand Junction, Colo. Photo by Barton Glasser / Special to The Colorado Trust
In 2008, Nita Whitson was a single mom of a teenager when she built her townhome in Fruita through Housing Resources.
“I’d been looking to buy a house and all that was in my price range needed extensive work,” she said.
At the time, Whitson worked as a business loan assistant at a bank. She remembers how difficult it was to work full-time while also toiling 30 hours a week at the construction site. Friends and family members pitched in to help Whitson fulfill her required hours.
Still, it was frustrating at times, she recalled. There were 10 homebuilders in her group, all with various personalities, and occasionally there were conflicts. But she doesn’t regret it.
“I tell people, it’s a lot of hard work,” Whitson said. “However, in the end, it’s so worth it. I wanted to own a home to give my daughter that stability, for her to see that you can do anything you put your mind to.”
In February, Whitson moved out of the townhome she and others built to move with her husband to Durango. She now rents the home to her daughter, a 30-year-old single mother of an infant son.
“Now she has a place to live where she can raise my grandson,” Whitson said. “I don’t have to worry about her being displaced or her rent going up. I’m grateful for it. I’m so proud of my house, the accomplishment. I absolutely love my house.”
