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Housing Kitsap's headquarters at Mickelberry and Bucklin Hill roads in Silverdale.(Photo: Meegan M. Reid / Kitsap Sun)

SILVERDALE New multifamily projects remain on holdas Housing Kitsap works to rebuild its finances. But Kitsaps housing authority is moving into Mason County with two self-help housing projects in the works for Shelton and Allyn.

Self-help housing allows families to build their own home alongside a group of neighbors, with the down payment covered by personal labor, help from Housing Kitsap staff and low-interest loans provided by the U.S. Department of Agriculture.

However, the program has run up against Kitsaps skyrocketing property costs in recent years. Thats prompted Housing Kitsap to look beyond the countys borders, something the agency hasnt done in more than a decade.

Land is very difficult to find in Kitsap, said Dean Nail, Housing Kitsaps director of single-family housing. We would like to stay in Kitsap, but Shelton has a need for housing as well.

The two sites in Mason are still in their beginning stages. Housing Kitsap is still finalizing the purchase of the Allyn property, which is not expected to see construction until 2022. The Shelton property, on the other hand, is projected to start building this summer.

Housing Kitsap bought the Shelton property in June for around $510,000. That amounted to about $33,000 per lot far less than the going rate in Kitsap, which Nail says is more than $80,000.

One of the big things (Nail)does is look for opportunities, and hes looking all over, said Housing Kitsap Executive Director Stuart Grogan. Weve looked at a number of properties over the years and it's really exciting we have the two.

Those projects will mark Housing Kitsaps first ventures into Mason since 2006, when a self-help projectwith 22 homes was completed in Shelton. The Kitsap housing authority had previously coordinated self-help projects throughout the Olympic Peninsulabut has only focused on Kitsap sites in recent years, Nail said.

The self-help program is paid for by theUSDA,which provides low-interest loans to homeowners. Mortgage payments are subsidized based on household income. Housing Kitsap helpspackageconstruction loans for participants and provides assistance during construction.

There are currently three other self-help sites in the works by Housing Kitsap: Kingston's Maple Lane development, as well as Prosperity Park and Sherman Ridge, which are both in Port Orchard.

Constructiontakes around 12 months, withgroups of families working around35 hours per week on their home. Groups at Maple Lane and Prosperity Park are entering the final legs of building, and homes areexpected to be completed this spring. Another group at Prosperity started building a few months ago.

Brandon and Jessica Johnson move furniture to their new home at the opening ceremony of the Maple Lane Group One Kitsap Housing development in Kington on Friday, December 14, 2018. (Photo: Larry Steagall / Kitsap Sun)

This isn't the first time the region's hot housing market has prompted Housing Kitsap to take another approach.A few years ago, Sherman Ridge was the first batch of self-help projects where Housing Kitsap developed lots from scratchinstead of buying them at market rate.

The expansion into Mason comes on the heels of Housing Kitsap offloading several properties, part of the agencys three-pronged plan to regain financial stabilityafter emerging from near-financial catastrophe last year.

In recent months, the Housing Authority sold off the 550 Madison Avenue apartment complex on Bainbridge Island and undeveloped Olhava property in Poulsbo. The agency is still working on selling a third property, undeveloped Viking Crest land in Poulsbo. The agency has also moved toraiserent across its 17 properties.

For Grogan, the self-help projects in Mason allow Housing Kitsap to expandhomeownership in the broader region while staying focused on affordable housing options in Kitsap.

We have multiple needs and multiple interests for affordable housing. Sometimes it means rental housing is the right solution for a household and sometimes the opportunity to build and own a home longer term is really great, he said. But it's really important for all of those options are available.

Austen Macalus is the Kitsap Sun's social services reporter. He can be reached at austen.macalus@kitsapsun.com or 360-536-6423.This coverage is only possible with support from our readers. Sign up for a digital subscription.

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Housing Kitsap moves ahead with projects in Mason County - Kitsap Sun