Transcript The Key to a New Home - Welcome to Habitat for Humanity of

P.O. Box 423, Atwater CA 95301
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Today’s Presenters
 Diane Bair, Chair Selection Committee
HFHMC
 George Gallaher Selection Committee
HFHMC
Special thanks to our board members and
volunteers for their assistance today.
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Habitat for Humanity
An Equal Housing Partner at work in
Merced County
Building HOPE
Building
COMMUNITIES
One NAIL at a
time…
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Vision Statement
A faith-based housing ministry bringing
people together from all walks of life;
to work in partnership with families in
need; to help eliminate poverty
housing in our community and
worldwide.
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History
 Became Habitat affiliate in 1993
 11 families live in HFHMC homes

1 home is currently in the
predevelopment stage
 1 family housed in 2005
 Potential to build 2 homes in 2008
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Statement of Purpose
 Improve affordable housing conditions
 Work in partnership with other community
agencies to address affordable housing needs
 Provide long term, no interest loans to those
who qualify
 Empower community members through
educational programs
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Who Qualifies for a Habitat for
Humanity Home?
Income is 30% to 50% of Area Median
Income
Demonstrates a serious need
Has the ability to repay costs
Willingness to partner through 500
hours of sweat equity
Resident of Merced County 1 yr min
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Income Guidelines 2007
Family Size
1 person
2 persons
3 persons
4 persons
5 persons
6 persons
7 persons
8 persons
Minimum Income
Monthly
Yearly
$900
$10,800
$1,029
$12,350
$1,158
$13,900
$1,287
$15,450
$1,391
$16,700
$1,491
$17,900
$1,591
$18,250
$1,700
$20,400
Maximum Income
Monthly Yearly
$1,500 $18,000
$1,715
$20,583
$1,930
$23,166
$2,187
$26,250
$2,319
$27,833
$2,486
$29,833
$2,652
$31,833
$2,833 $34,000
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Need
Present housing is not adequate
Unsafe or unhealthy living conditions
High cost burdens
Overcrowding
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Ability to Pay
Proof of steady income
Complete and full disclosure of financial status
Debt to income ratio
Credit history is considered
Inaccurate or partial information is grounds for
disqualification
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Willingness to Partner
Sweat Equity – 500 hours minimum
Ability to take on homeownership
responsibilities
Providing timely and complete information
Public nature of the program
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Where Does Habitat Build?
We believe that location
matters. We choose to build in
neighborhoods that have
available and affordable lots, as
well as active community
groups organized around issues
of empowerment.
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Habitat Home Sites
 Le Grand (two on E. Marshall St.)
 Merced 27th St. (Rehab.)
 Fig Ave.
 Mc Swain Road
 Jonathan Court
 W. Sixth Street.
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Location Discretion Policy
Habitat serves the eastern part of
Merced County
It is our goal to build homes in all the
communities in eastern portion of
our county
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Home Design
 Basic, “No-Frills” Housing
 Average Living Space:
900 square feet for a two-bedroom house
1,050 square feet for a three-bedroom house
1,150 square feet for a four-bedroom house
 Limited Design Options
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Buyer’s Design Options
Donated Materials = Affordable Housing
Buyer preferences are limited to
accommodations for disabilities
The next house built will have three
bedrooms.
Usually, families are asked to assist in the
selection of flooring and paint colors
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Sample House Plan
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Example of New Home
Construction
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Example of New Home
Construction Continued
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How Does Habitat Set the Price?
 All building costs are tracked
 No profit is taken
 No interest is charged
 An affordable mortgage is calculated
which is comprised of the principal + taxes
and insurance
 $1,000 down payment is required Down
payment can be accumulated in small
increments as house is built
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Resale Restrictions
Habitat has the first right of refusal
Shared appreciation occurs over
loan payoff period
Long term commitment
Borrowing against equity in the
home is not allowed
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Partnership Responsibilities
Sweat equity
Timely payments
Continuing partnership
Owner occupied housing – house cannot be
used as a rental
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Sweat Equity 101
 60/40 rule: partnering family has to
do 60% of the work and their friends
& family can do up to 40%
 No children under 16 allowed on the
job site on construction crews can
help clean-up etc.
 Child care provider hours are
counted toward sweat equity
 Attending useful educational classes
earns 2 for 1 sweat equity hours
 Sweat Equity hours must be on a
building site, unless other
accommodations are required
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Application Process
 Application
Give second address, must be able to contact you if eligible.
 Attachments for income verification
Photocopies only; originals will not be accepted; we will not
make copies
 Application Deadline
December 1, 2007, 5:00 p.m. Incomplete applications will not
be considered.
 Home Visit limited to those who pass through initial
assessment
 Written Response
This is a long & tedious process – be patient
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Application Attachments
1.- Two most recent wage stubs for all adult wage
earners
2.- Verification of other income sources (SSI,
TANF,AFDC,etc.)
3.- Copy of 2005 & 2006 filed Federal tax return
with all attachments
4.- Copy of 2005 & 2006 W-2’s/1099’s for all adult
applicants and household members
5.- Copies of last month’s utilities (electricity,gas,
telephone, etc.)
6.- Copy of rental agreement or rent check
7.- Copy of bank statement
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Common Misconceptions
Habitat is a “give-away” program
500 sweat equity hours is easy to do and you’re only
responsible for working on your own home
Habitat never repossesses a home
Once you’re in a Habitat home, your obligations are
limited to mortgage payments
There are loopholes in the application process or that
any one individual has preference
Someone can get rich quickly when they purchase a
home from Habitat
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Principle Sources of Support
Individuals
Churches
Groups
Trusts
Grants
Fund raisers
In-Kind/Contributions
Donated Auto Sales
Mortgage Payments
23%
2%
18%
6%
1%
1%
15%
13%
19%
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Other Services
Housing Counseling
Home repairs and
modifications
Partnering with other
community resources
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Volunteers making progress at a
HFHS Job Site
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A HAPPY HABITAT FOR
HUMANITY HOMEOWNER
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Thank you Gateway
Community CHURCH FOR
THE USE OF YOUR
FACILITY.
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Other Community Resources
Please visit our fellow community agencies in the
front hallway. They represent a wide array of
affordable housing programs & other related
services.
By Design Financial Solutions
(800) 750-2227
www.bydesignsolutons.org
United Way of Merced County
383-4242
www.unitedwaymerced.org
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