The Rio Grande Valley (RGV), on the Texas-Mexico border, is one of the poorest areas in the United States. Many of the local residents, specifically Mexican and Mexican Americans, are trapped in a cycle of chronic financial instability, suffering the effects of extreme poverty and a lack of affordable housing.
MiCASiTA is a phased construction housing project which enables families to take out low-cost mortgages that grow as they expand their homes, mitigating the accrual of large debts and encouraging long-term homeowner investment. The project was developed by the organisations buildingcommunityWORKSHOP and ‘come dream. come build.’, whose partnerships with lenders and private investors created the flexible loan product, as well as a mortgage fund.
Homebuyers are helped to reduce debt and save for a deposit before designing their dream home. An initial loan enables residents to purchase the core housing unit, which consists of a kitchen, bathroom, dining room and bedroom. Extra rooms can be added over time as the family’s financial situation improves or as their needs change. MiCASiTA will complete 6 homes over the coming year, which cost 15% less than market price, and is poised to expand into other impoverished regions, improving financial stability and building equity in communities where this was not previously an option.
