(AUSTIN) — Today, the Texas Department of Housing and Community Affairs (TDHCA), recognized the 25th 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's loans can be used to acquire or build a home, or reconstruct or rehabilitate an existing home.

"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," said Bobby Wilkinson, TDHCA Executive Director.

Bootstrap's funding is provided through the state's Housing Trust Fund and appropriated biennially by the Texas Legislature. Today, a majority of the loan repayments made by prior Bootstrap loan recipients help fund loans for future Bootstrap loans, thus affording a self-sustaining funding source for the program and an overall savings to the state. To date, Bootstrap has provided more than $68 million in home loans to eligible households, and accounted for nearly 2,200 homes throughout Texas.

Bootstrap loans provided to low-income families, or those making up to 80 percent of the area median family income, cannot exceed $45,000 per house, and can be combined with other funding sources such as those from private lending institutions, local governments, nonprofits, or any other sources.

The program requires the borrower provide at least 65 percent of the labor necessary to build or rehabilitate the proposed housing or provide an amount of labor equivalent to the required amount by working through a state-certified owner-builder housing program.

Currently, 22 program administrators provide the tools and training to households. Program administrators include Habitat for Humanity chapters and community nonprofits. Households or individuals looking for assistance should search via TDHCA's Help for Texans webpage, www.tdhca.texas.gov/help-for-texans.

The Department must set aside at least two-thirds of the annual available funds for owner-builders whose property is in a census tract that has a median household income that is not greater than 75 percent of the median state household income for the most recent year for which statistics are available.