TDHCA Press Room

 

Texas Bootstrap Loan Program celebrates 20 years

TDHCA Governing Board Vice-Chair Leslie Bingham, State Senator Eddie Lucio Jr., and TDHCA Executive Director Bobby Wilkinson attend the 20th Anniversary celebration of the Texas Bootstrap Loan Program.

TDHCA, the Rio Grande Valley Habitat for Humanity and Sen. Eddie Lucio Jr., this week celebrated the 20th Anniversary of the Texas Bootstrap Loan Program (Bootstrap), one of the state’s most successful, cost effective programs helping very low-income residents achieve homeownership through “sweat equity.” The Bootstrap Program provides loans to purchase or refinance real estate property on which to improve existing or construct new residential housing.

“The Bootstrap Program has had an incredible, positive impact on communities and families around the state,” said Bobby Wilkinson, TDHCA Executive Director. “Through the labor and commitment of a homeowner, his or her family, a network of volunteers, nonprofit organizations and community businesses, Bootstrap loans have led to the completion of hundreds of homes in Texas.”

The Bootstrap Program accounts for 1,854 rehabilitated or reconstructed homes throughout Texas since its first loan issued in Palmhurst in Hidalgo County in 2000.

Additional notable highlights include:

• $61 million: total amount of loans provided to households throughout the state
• 30 housing providers: provide the tools and training to participating households
• $45,000: average loan amount per household
• $125: typical monthly loan repayment over 30 year

The program was created thanks to State Senator Eddie Lucio Jr., who authored Senate Bill 1287 during the 76th Regular Session of the Texas Legislature. Today, a majority of the loan repayments made by prior Bootstrap loan recipients help fund loans for future Bootstrap loans, thus providing a self-sustaining funding source for the program and an overall savings to the state.

“Our legislative ingenuity and TDHCA’s sensitivity to the plight of working families in need of affordable housing has helped Texas become the leader in the nation in Self-Help Housing through our Texas Bootstrap Program,” Sen. Lucio said.

All Bootstrap loan participants are required to provide at least 65 percent of the labor necessary to build or rehabilitate their housing by working with a state-certified Nonprofit Owner-Builder Housing Provider (NOHP). Currently, 30 program administrators provide the tools and training to members of households. Program administrators include Habitat for Humanity chapters and community nonprofits. The list of Nonprofit Owner-Builder Housing Providers can be found here.

“Neighbors lending a hand to help neighbors; community residents and businesses lending time, materials and skills to help a family. The Bootstrap Program is about so much more than just a loan,” said Bobby Wilkinson, TDHCA Executive Director. “We’re honored to celebrate our amazing Bootstrap administrators and dedicated, hard-working Texas families who prove that having a home—a safe, livable home—can be a reality.”