THE ORGANIZATION
WHAT IS HABITAT FOR HUMANITY?
Habitat for Humanity is an independent, non-profit, ecumenical housing program dedicated to the elimination of poverty housing by building homes in partnership with families in need. The ministry of Habitat is to provide simple, decent, affordable housing to those who would not qualify or be able to afford a conventional mortgage. The Habitat program is about home ownership, a long-term solution designed to break the poverty cycle.
HISTORICAL BACKGROUND
Habitat for Humanity International was founded in 1976 in Americus, Georgia by Linda and Millard Fuller. The program developed from the concept of "partnership housing", based on Christian principles, where those in need of adequate shelter work side by side with volunteers from all walks of life to build simple, decent houses.
In 1984 Habitat's most famous volunteer, former U.S. President Jimmy Carter, along with his wife, Rosalyn, participated in their first Habitat build project. Their personal involvement in Habitat's ministry brought the organization national visibility and sparked interest in Habitat's work across the nation.
Habitat for Humanity has built more than 225,000 homes in 90 countries around the world.
Habitat for Humanity Canada (HFHC) was born in 1985, with the formation of the first Canadian affiliate in Winkler Manitoba. In early 1988 an HFHC national office was established, which is currently located in Waterloo, Ontario.
Habitat for Humanity Canada has dedicated more than 1,000 homes from coast to coast since its inception. There are currently 70 affiliates in all 10 provinces and one territory, helping to eliminate poverty housing.
Habitat for Humanity Thousand Islands became an affiliate in 1999 and built its first home that year. In the fall of 2008 it began construction of its 5th home.
HOW DOES HABITAT FOR HUMANITY WORK?
Through volunteer labour, efficient management and tax-deductible donations of money and materials, Habitat builds simple, decent houses with the help of the homeowner (partner) families. Habitat houses are sold to partner families at no profit and financed with affordable, no-interest mortgages. The homeowners' monthly mortgage payments go into a revolving fund, which is used to build more houses.
Habitat for Humanity is not a give-away program. In addition to mortgage payments, each homeowner invests hundreds of hours of their own labour, called "sweat equity", into the building of their house and the houses of others.
THE CONCEPT
Who Qualifies For A Home?
The three criteria to qualify for a Habitat home are (1) need for affordable housing, (2) ability to repay a Habitat mortgage and (3) willingness to partner with Habitat.
Need for affordable housing is defined by a family income that is below the government-set Low Income Cut-Off (poverty line) for their particular region, and existing living conditions that are inadequate in terms of structure, cost, safety or size. The ratio of shelter expense to total income is also factored.
Ability to repay a Habitat mortgage requires that the family has a stable income sufficient to cover the monthly mortgage payments and other expenses that come with home ownership.
Homeowners must demonstrate a willingness to partner with Habitat by contributing 500 hours of volunteer labour ("sweat equity") towards the building of their home.
For more detailed information on selection criteria click here.
How Are Families Chosen?
Families are chosen on the basis of the Habitat For Humanity Thousand Islands Selection Criteria.
For more information, contact FamilySelection@habitat1000islands.ca
What Do Families Contribute And What Do They Receive In Return?
In addition to mortgage payments, each homeowner invests five hundred hours of their time to assist in the building of their home and other Habitat homes. In return, Habitat homeowners are given the unique opportunity to buy a home through an interest-free mortgage. Thus, gaining substantial equity they would not have if renting. They also acquire a safe, affordable place to live and the pride of ownership.
How Do We Acquire Land?
Acquiring affordable land has been one of Habitat for Humanity's greatest challenges. Habitat seeks the assistance of individuals, corporations and governments at all levels in acquiring suitable donated land. Habitat for Humanity Thousand Islands has been fortunate to have the cooperation of local municipalities in donating land to build affordable homes. Habitat also relies on individual donors for land donations. As a charitable organization, Habitat for Humanity Thousand Islands can issue a tax receipt for donated land.
How Are The Homes Built?
Through volunteer labour, efficient management and tax-deductible donations of money and materials, Habitat builds simple, decent houses with the help of the homeowner. Habitat houses follow standardized design criteria that maintain the "simple and decent" archetype.
Most Habitat projects are single dwellings or semi-detached homes, but Habitat for Humanity is expanding its build projects to consider including restoration and refurbishments, condominiums and row housing projects.
How Does This Program Benefit The Families And Communities In The Long-Run?
Over time, a family's equity in their home increases. Habitat families often see an improvement in their financial situation since the percentage of their income being spent on housing remains at approximately 30%. Prior to purchasing a Habitat home many of these families are spending over 50% of their income on rent.
A safe, healthy living environment contributes to the positive growth and development of children. Habitat has recorded many examples of children within Habitat families becoming healthier, completing a post-secondary education and establishing successful careers.
Communities benefit as former renters become homeowners who contribute to the tax base. Habitat build projects also offer an opportunity for community members, of all walks of life, to come together and work side by side in a collaborative way.
As the poverty cycle is broken, and a family's financial situation improves their dependence on local social services is decreased. In addition, pride of ownership leads to a renewed sense of confidence, and along with their stable, long-term housing arrangement, they become long-term contributors to the community and the local economy.
THE ECONOMICS
How Are The Homes Funded?
Habitat builds homes with volunteer labour and as much donated or cost-reduced material as possible. Fundraising takes place to help offset expenses of materials, services and land when they are not available through donations. Financial support is received from individuals, corporations, service groups and the faith community.
Mortgage payments from current homeowners are used 100% to fund the building of future homes.
Currently, a three-bedroom Habitat house in our community would be appraised between $125,000 and $140,000. Prices will differ slightly depending on location and the costs of land, labour and materials.
Habitat houses are affordable for low-income families because there is no profit included in the sale price and no interest is charged on the mortgage. The typical amortization of a Habitat mortgage in our community is 20 to 25 years.
Who Holds The Mortgages?
Mortgages are held by Habitat for Humanity Thousand Islands until the mortgage is paid off.
How Are Donations Distributed And Used?
Donations made to Habitat for Humanity Thousand Islands are used as designated by the donor. Gifts received by Habitat for Humanity Canada that are designated to a specific affiliate or project are forwarded to that area. Financial statements are available from Habitat for Humanity Thousand Islands or Habitat Canada.
How Does Habitat For Humanity Relate To Government?
Habitat for Humanity accepts government support as long as there no conditions that would violate Habitat's principles.
How Is This A Hand Up, Not A Hand Out?
Habitat houses are sold to families, not given to them free of charge. In addition, families help to build their own home.
By building homes at low cost, requiring no down payment, and not charging interest on the mortgage, Habitat for Humanity is able to provide an opportunity, or a "hand up", to buy a home for families that would not otherwise qualify for a conventional mortgage.
The Revolving Fund For Humanity
The homeowners' monthly mortgage payments go into a fund that is used to build more homes. The more homes that exist, the more cash flow there is available for further building. This "revolving fund for humanity" fuels exponential growth in the number of houses that are built over time. Habitat partner families help other families be lifted out of poverty housing through their mortgage payments. Money and materials donated to Habitat for Humanity Builds are never lost to the community; it is used over and over to build more and more homes for families in need of affordable housing.
What Happens When Income/Financial Position Of Families Change?
The income of all Habitat homeowners is reviewed on an annual basis. If income increases, monthly mortgage payments are adjusted to remain at a percentage of their monthly income. If income decreases, usually due to a temporary situation such as a job loss, similar adjustments may be made to maintain affordability during this period of decreased cash flow.
Habitat for Humanity is committed to educating and supporting partner families toward successful home ownership. This commitment has resulted in a low mortgage default rate of about 1% in Canada.
What If The Family Decides To Sell Their House?
The Habitat mortgage is designed to keep monthly payments low, encourage long-term commitment and prevent short-term profit. This is done by way of a second mortgage. The first mortgage reflects 75% of the appraised value of the house. The second mortgage reflects the remaining 25% of the appraised value. The value of the second mortgage also decreases gradually with time, usually beginning at the 12 year mark.
If a family were to sell their house in the early years of their mortgage (within the first 12 years) the outstanding second mortgage would then be payable.
Habitat for Humanity has the first right to purchase the property if the homeowner wants to sell.
What Happens If The Family Does Not Make Their Mortgage Payments?
Habitat makes every effort to work with the homeowner families to avoid foreclosure through financial counseling, renegotiated mortgages, etc. While foreclosure is the last resort, sometimes it cannot be avoided. Ignoring homeowners' delinquencies can be unfair to other homeowners.
GETTING INVOLVED
How Does A Habitat Project Get Started?
Anyone who wants to explore the possibility of eliminating poverty housing in his or her community in the Thousand Islands is encouraged to contact us for information. Habitat for Humanity Thousand Islands is interested in working with community groups across the area.
How Can I Become A Volunteer?
To volunteer with Habitat for Humanity Thousand Islands visit our Volunteer page and fill in a volunteer form.
To travel to a location outside your community to help build, contact Habitat for Humanity Canada (www.habitat.ca) or Habitat for Humanity International (www.habitat.org) for a list of projects worldwide..
What Can I Do To Help?
Pray for the work of Habitat for Humanity.
Make a tax deductible donation to Habitat for Humanity Thousand Islands – (link to donate tab)
Participate in Habitat fundraising events. (link to volunteer tab)
Why Building Partnerships with Churches Is Essential
Habitat for Humanity is a Christian ministry answering the call of the gospel to respond to our neighbors in need. What better partners could we have than local churches? Actively pursuing and nurturing partnerships with churches helps us fulfill our mission of demonstrating the love and teachings of Jesus Christ. Approaching churches to be in ministry together is a powerful way to build partnerships.
Many churches have initiated Habitat affiliates in their communities. The challenge of the present is to build on the legacy of Habitat's work over the past generation. Find where the spirit of Christ is alive in churches and you will find partners in your work.
How Churches Can Benefit Habitat for Humanity
Establishing strong relationships with churches can strengthen our affiliate and ultimately help serve more families in our community who need a simple, decent home in which to live. In addition to supporting Habitat with funds and labour, churches can help by:
- Building a prayer network
- Raising money through special collections or fundraising events
- Encouraging volunteers from the congregation and community
- Sponsoring a particular project
- Welcoming Habitat volunteers to the area.
- Supporting a project somewhere else in the world through Global Villages
Every affiliate is empowered when the community of faith prays for Habitat and when churches join Habitat as partners in discipleship and service.
How Habitat for Humanity Can Benefit Churches
Our ministry offers a unique opportunity for people to experience their faith in new and exciting ways. Participating in a Habitat project can:
- Help people see the spirit of God at work outside the four walls of the church.
- Help build the church.
- Habitat for Humanity is a widely recognized and respected Christian organization.
- A Habitat project can be just the spark that gets people excited about working in Christian community.
- Help a church fulfill its mission to minister to persons who are in need.
- Attract new members and bring energy into a congregation.
- Enable individuals to experience spiritual growth.
- Be a means for identifying and developing leaders within the church.
- Develop new fellowship between Christians locally, nationally and internationally.
