Twelve families had their dream of homeownership become a reality when they were handed keys to their new Blaine homes during a Whatcom-Skagit Housing ceremony on Tuesday.
Dozens of people gathered for the key ceremony at The Ridge at Harbor Hills subdivision to celebrate the newest cohort of homeowners through Whatcom-Skagit Housing, a Ferndale-based nonprofit. The nonprofit helps qualifying families become first-time homeowners by having them build their homes and fellow participants’ homes, while directing them to affordable loans and down payment assistance.
Andrii and Alina Karashchuk, their three children and a Ukrainian refugee living with them were among 45 people who called The Ridge home after Tuesday’s ceremony.
Andrii Karashchuk, who heard about the program through relatives, said Whatcom-Skagit Housing seemed like the only path to homeownership.
“To own a house is to be free,” he said.
The celebration of the Karashchuk family and the 11 new families on their block drew speeches from nonprofit executive director Julia Menkee and Blaine Mayor Mary Lou Steward as well as representatives from Olympia and Sen. Maria Cantwell’s office.
Since its founding in 1977, Whatcom-Skagit Housing has helped over 700 families build homes in Whatcom and Skagit counties. Sue Sturgill, a founding board member and Blaine resident, said the nonprofit’s first homes were in Blaine before expanding to Ferndale, Nooksack, Everson and other rural areas despite recent federal funding challenges.
“It’s so positive,” Sturgill said of the program. “Not only are the families getting a home, but once they finish building a home, they have the skills to take care of it.”
The nonprofit searches for rural land it can hold for families with limited incomes to build on. It then helps those families secure an affordable loan through the U.S. Department of Agriculture’s Rural Development office and obtain down payment assistance with the Washington State Department of Commerce and nonprofit Community Frameworks.
The cohort of future homeowners are required to spend 35 hours per week building the homes for 12 to 14 months. Those hours can be split between the signer and family or friends, but the signer must contribute at least 50% of the hours.
Whatcom-Skagit Housing helps the homeowners from bid through inspection, providing contractors who guide the homeowners through the construction process. The nonprofit also works with the homeowners to ensure they have support and stable transportation while they put in sweat equity.
Menkee said the program helps families fulfill the American Dream, something that has become more difficult as expenses and housing rise faster than wages.
“One of the tenets of the American Dream is home ownership,” she said. “Homeownership changes everything for a family. It gives them stability. It gives them a chance to put down roots and contribute to a community.”
Menkee said families must earn below 80% of the area median income, which is $86,700 for an individual and $114,450 for a family of five in Whatcom County. Participants need to also be U.S. citizens, afford the mortgage and work full-time during the construction.
The homes cost about $400,000 and come with affordable mortgages adjusted to income that typically cost $1,200 to $1,800 per month, Menkee said.
Homes average three to four bedrooms and are 1,200 to 1,500 square feet, depending on the family size. The homes, which sit on 5,000-square-foot lots, are energy efficient without custom finishes.
The waitlist is about five years, Menkee said.
New homeowner Maria Estrada said it was one of her biggest life accomplishments to build a home for her children with her husband, Patricio Contreras.
“It wasn’t anything easy,” Estrada said through a translator. “It was a lot of stress, a lot of physical and mental work to build this house, but in the end, we own our own home.”
Together, the new homeowners put in 24,000 hours of labor, which pulled down the price of each house by $134,300 in sweat equity, Menkee said. The construction generated $167,600 in sales tax, and the homes will contribute $16,800 annually in property taxes.
The program has run into federal funding hurdles over the past few years, which Whatcom-Skagit Housing officials said have slowed their ability to create more affordable housing.
The group that just received their keys were stalled for six months because the U.S. Congress struggled to pass the 2024 budget and then reduced USDA Rural Development’s Section 502 Direct Loan Program funding by about one-third.
A second delay affected the upcoming cohort of homeowners, who waited six months after funding was temporarily blocked for the same loan program. Once funding was released, the federal government changed the program’s eligibility requirements. That cohort is expected to close on their loans later this month.
Members of the upcoming cohort cheered on their future neighbors’ accomplishments during the key ceremony on Tuesday. The program will continue this spring, with construction starting on another 12 homes on the same street in The Ridge.
As for Andrii Karashchuk, he said he’s excited to barbecue fish and build a gazebo in his backyard, where he can invite neighbors.
“We not only built a house,” he said. “We built a community.”
