October 2, 2025 Seward Folly Staff

A major new housing project, Hilltop, is well underway above Seward High School, marking the largest residential development in the area in decades. Of the 82 lots, only a handful remain for sale. While construction is ongoing throughout the neighborhood, one group of ten homes is being built in a unique way.

Through a partnership between USDA Rural Development, Alaska Housing Finance Corporation, and RurAL CAP, ten families are building their own homes as part of the Mutual Self-Help Housing program. The program is designed for first-time homebuyers and offers affordable home ownership with no down payment.

Participants work together under the supervision of a RurAL CAP construction manager, completing at least 65% of the labor themselves and committing to a minimum of 35 hours per week. No one moves in until all the homes are finished, and each family helps build every house in the group. This “sweat equity” approach reduces the cost and eliminates the need for a traditional down payment.

The families and volunteers handle most of the construction work themselves, including framing, roofing, siding, and interior finishes such as insulation, painting, and installing cabinets. Specialized tasks like laying foundations, electrical, plumbing, and some roofing are completed by professionals.

The goal is to have all homes weather-tight before the first snowfall, allowing interior work to continue through the winter. Chris Blanchart, the project manager, says the biggest challenges for the owners and volunteers are overcoming fear of heights and learning basic construction skills.

Tracy Squires, one of the new homeowners, says many participants have never used a tape measure or a hammer before. She describes teaching the group as “like teaching aliens how to make a peanut butter sandwich.”

Each home will range from 1,100 to 1,700 square feet and cost around $400,000. Buyers receive loans at a 5.125% interest rate with payback periods between 33 and 38 years, keeping monthly payments under $2,000.

To qualify, applicants must earn no more than 120% of the area’s adjusted median income and commit to the labor requirements. Family members, friends, and community groups can help fulfill the hours. Local organizations, such as the Rotary Club and the Quilter’s Club, have already pitched in by helping with construction and providing meals.

The Mutual Self-Help Housing program has operated nationwide for 50 years, building homes in all 50 states. Since 2007, 102 homes have been built in the Soldotna/Kenai area, and the Seward project is the first of its kind in the city. RurAL CAP hopes to expand to other locations, including Kodiak, and possibly add more homes in Seward if land becomes available.

The organization is interested in expanding their range, but finding lots clumped together with access to utilities is difficult. Hilltop presented the perfect opportunity for the program. Mi’shell French, director of Rural Housing, credits Casie Warner with the Seward Prevention Coalition with helping to get this project rolling locally. They’re hoping to start another project in Kodiak soon, and if they can find suitable land in Seward, another phase is possible locally. 

For more information or to apply, visit https://ruralcap.org/client-services/housing/affordable-housing/. Volunteers are welcome Tuesdays through Sundays and can contact Chris Blanchart at 907-420-7118.