Building Rutherford 2012 Campaign Brochure

A Four-Year, $3,875,000 Initiative of Business, Church & Community Groups Partnering with Working Families to Build Affordable Homes and Rebuild Neighborhoods in Rutherford County

Building the Future

Building HOMES

Building TEAMWORK

Building COMMUNITY

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What isRutherford County Habitat for Humanity?

Founded in 1989, Rutherford County Habitat for Humanity (RCHFH), an affiliate of Habitat for

Humanity International, is a nondenominational Christian housing ministry that builds affordable

homes in partnership with hard working families in Rutherford County. From October 1989 to

June 2012, RCHFH completed 110 homes. These homes are built in Murfreesboro, Smyrna,

and LaVergne.

Homes are built using donated funds and volunteers provided by sponsor organizations,

working alongside future Habitat homeowners and trained work site managers. The homes

are purchased by RCHFH families at the cost of construction (land and building materials),

through an interest-free, 25-year mortgage initiated, held and collected by RCHFH. Families

are selected on the basis of need, ability to pay, and willingness to partner with RCHFH

— all without racial or religious discrimination.

The quantity of available affordable homes increases without negatively impacting the existing

private sector housing market. This is done by building and selling quality

homes for the cost of construction to working families earning less than is

required to qualify for a market price home.

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Before Demolition

After

Habitat for Humanity eliminates housing blight and replaces it with new energy efficient homes that add to the local tax base through increased property values and utilities.

House #99 (pictured left) was built on Hancock Street with 180 volunteers

over an eight-week period.

Building Rutherford is a four-year, $3,875,000 initiative of business, church and community

groups partnering with working families to build affordable homes and rebuild neighborhoods

in Rutherford County. Through this 2011 – 2014 initiative, Rutherford County Habitat for

Humanity (RCHFH) will expand homeownership opportunities by acquiring residential lots in

older sections of Murfreesboro, Smyrna and La Vergne plus developable tracts suitable for

small Habitat neighborhoods (5 – 12 homes) throughout the county.

The Building Rutherford initiative was developed using the comments and suggestions of

over 100 business, church and civic leaders interviewed as part of a study conducted by

ByrneAllen Corporation in 2010. The initiative represents the operational focus of RCHFH for

2011 – 2014.

What is Building Rutherford?

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Adam's Place Anderson News ARAMARK

Ascend Federal Credit Union Asurion Insurance Services

Bradley Nursery School Captain D’s Comcast Compassion Home Health

Dairy Queen Dell Computer Dodge’s Market Fleet One

Food Lion General Mills Genesco, Inc. Hair Five-O IDEAL (Tridon)

Ingram Content Group Krystal’s Matco Tools McDonald’s

Mid-Cumberland Head Start Middle Tennessee Medical Center

Middle TN Mental Health Murfreesboro City Schools

Murfreesboro Health Department SSC Service Solutions

Murfreesboro Fire Department Murfreesboro Medical Clinic

Murfreesboro Rover Service Nashville Metro School System

National HealthCare Corporation On The Mark Services

Perfect Equipment Corp. Inc. Presco Tech Industries, Inc

Randstad Rutherford County Adult Activity Center

Stones River Center Smyrna Town Center Taco Bell Team Staff

Tier Technology TN Family Solutions Tennessee National Guard

Test America Laboratories Tower Automotive, Inc.

United Parcel Service WASCO, Inc. Verizon Wireless Vi-Jon, Inc.

Wal-Mart Walden Books Yates Services, LLC

Rutherford County Habitat for Humanity FAMILY EMPLOYERS

Community Development

Under its previous strategic plan, Rutherford County Habitat for

Humanity (RCHFH) targeted primarily sections of Murfreesboro for

its homebuilding mission. Working in concert with local churches,

businesses, civic organizations and the City of Murfreesboro, RCHFH

built a significant number of its 110 homes in these downtown areas.

As a result, the appraised value of some 80 properties in the City of

Murfreesboro increased by 371% to a current value of over $5,450,000.

RCHFH's 100 homes pay over $81,000 in annual city and county

property taxes.

As a “hand-up, not a handout,” the homebuilding and purchasing process

instills a sense of accomplishment in RCHFH families that, in turn, promotes

success in all aspects of their lives. The pride of Habitat homeowners is

contagious. The "home improvement bug” often bites neighbors when a new

Habitat homeowner moves in. Habitat homes improve neighborhood property

values and overall neighborhood appearance.

In a recent study involving over 100 community leaders, a substantial

majority of area leaders believe Rutherford County has “pockets” of

substandard housing. Through the study, RCHFH was encouraged to build

homes in economically-challenged sections of Murfreesboro, Smyrna and

La Vergne. Under the Building Rutherford initiative, RCHFH will establish a

Land Acquisition Committee to search out viable properties in Murfreesboro,

Smyrna and La Vergne on which to construct new, affordable Habitat homes.

Community leaders understand the powerful and positive changes that

homeownership brings to an established neighborhood, especially the

homeownership of new covenant-restricted homes built by RCHFH.

impacting the local workforce

Affordable Housing

In a recent survey, only one-quarter of Rutherford County business,

church and civic leaders believe that a Rutherford County family earning

$35,000 can afford to buy a simple, decent home in our community.

While Rutherford County Habitat builds homes in partnership with

families earning $17,000 to $32,450, nearly all community leaders

interviewed believe that local employers are not “making the connection”

between their lower-wage employees and the homeownership opportunity

offered by RCHFH.

As part of the Building Rutherford initiative, RCHFH will help employers

inform employees earning $17,000 – $32,450 about the affordability of a

RCHFH home. With apartment rental rates at or above $650 per month and

Habitat mortgage payments around $380, connecting hard working employees

with RCHFH can produce direct benefits for the employee, employer and our

entire community.

building community

Neighbors enjoying fellowship as they work together to "grow" a better community.

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Community leaders, like Nissan, understand the powerful and positive changes that homeownership brings to a neighborhood.

Isaiah 32:18- "My people will live in peaceful dwelling places, in secure homes,

in undisturbed places of rest."

What is the role of Habitat for Humanity in Rutherford County?

Team Building & Community Involvement

Habitat work sites are places to build relationships as well as houses. This

self-help solution to the problems of substandard and affordable housing

brings together future homeowner families with Habitat volunteers from

churches and businesses committed to making a difference in our community.

In a recent survey of business and church leaders, over two-thirds indicated

that their organizations participate in structured team building or community

involvement projects. Nearly all leaders interviewed stated that building a

Habitat home is a viable team building or community involvement project for

any organization. Most, however, mistakenly believed that building a Habitat

home required “skilled labor ” — when, in fact, most Habitat homes are built by

unskilled volunteers led by experienced Habitat staff or volunteers.

Through the Building Rutherford initiative, sponsor organizations will be

offered opportunities to utilize Habitat build days as team building or community

involvement projects for their business, church or civic group. RCHFH is a highly

successful program of neighbors helping neighbors build a better life for their

family, their neighborhood and their community.

corporate team building Christian missionPartnering with a Local Christian Organization

Congregations of faith and other religious institutions seek proactive

mission opportunities. Members eager to help others through mission work

are often unable to travel on overseas mission trips due to various factors.

Some congregations seek to make an impact in economically-challenged

areas through new homebuilding, but soon realize that homebuilding and

its accompanying ‘red tape’ is a great deal more complicated than just

painting or hammering nails.

As a nondenominational Christian housing ministry, RCHFH is eager to partner

with all congregations of faith in local mission work. After building 100

homes in Rutherford County, the affiliate staff will make ‘building a home in

partnership with a hard working family ’ a joyful and life-changing experience

both for the Habitat family and congregation members. Partnering together, we

can change our community.

CommunityDeveloping

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A Four-Year, $3,875,000 Initiative of Business, Church & Community Groups Partnering with Working Families to Build Affordable Homes and Rebuild Neighborhoods in Rutherford County

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Brian ThurePresident

Taylor Farms Tennessee, Inc

Homeownership Level Pacesetter ___ $100,000

Leading the Build.We are committing our personal time and the financial resources

of our organizations toward accomplishing the goals of Building Rutherford.

We enthusiastically urge you to join with us, our employees and our members, and many other supporters of

Rutherford County Habitat for Humanity (RCHFH) as an investor in Building Rutherford.

Community Level Pacesetter $250,000+

Susan BrennanVP, Manufacturing Smyrna & Decherd

Nissan North America, Inc.

Terry HaynesGeneral Partner & CEO

Haynes Brothers Lumber

$40,000

Supporter Level Pacesetters

Joseph A. PeayChief Executive Officer Murfreesboro Medical

Clinic

$20,000

Rev. James McCarrollPastor

First Baptist Church

$40,000

Sherry ColePresident

Likes to Travel

Woodworker Team Level Pacesetter ___ $60,000

Jon ColePresident

Storage Plus

Woodworker Level Pacesetter ___ $65,000

Norman BrownPresident

Roscoe Brown Heating & Cooling

Mark Moore, Esq.Principal

Law Offices of Mark Moore

American Dream LevelPacesetter ___ $45,000


FOUR-YEAR FUNDING GOALS

2011 HOME CONSTRUCTION $ $ 10AffordableHomes@$60,000HomeSponsorship 600,000 LandAcquisition@$20,200perlot 202,000 802,000

2012 HOME CONSTRUCTION 11AffordableHomes@$60,000HomeSponsorship 660,000 LandAcquisition@$23,000perlot 253,000 913,000

2013 HOME CONSTRUCTION 12AffordableHomes@$65,000HomeSponsorship 780,000 LandAcquisition@$25,000perlot 300,000 1,080,000

2014 HOME CONSTRUCTION 12AffordableHomes@$65,000HomeSponsorship 780,000 LandAcquisition@$25,000perlot 300,000 1,080,000

Four-Year Funding GOAL $ 3,875,000

Expandourcommunity'sunderstandingofHabitat’smissiontobuildandsellaffordablehomesinpartnershipwithqualified,hardworkingRutherfordCountyfamilies

IncreasesponsorrecognitionthroughexpandedmediaandcommunityeventsdesignedtogenerateattentionandexcitementaboutthemissionofRCHFH

Acquireaffordableresidentiallotsineconomically-challengedsectionsofMurfreesboro,SmyrnaandLaVergne

Locateandacquiresmall,developabletractsonwhichtodevelopsmallcovenant-restrictedRCHFHsubdivisions(5 – 12 homes)

Designandbuild45single-familyHabitatforHumanityhomesinpartnershipwithqualified,RutherfordCountyworkingfamilies

Reachouttobusinesses,churches,foundationsandindividualsinordertoidentifyqualifiedpartnerfamiliesfromthelocalworkforce

Maximizecorporate,foundation,churchandindividualinterestinsponsoringhomesandland

FOUR-YEAR OBJECTIVES

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The Four Year Plan


Rutherford County Habitat for Humanity families must qualify under

specific guidelines. The head of household must be a U.S. citizen or

permanent legal resident who has:

Lived in Rutherford County for at least six months or worked in the county for at least one year

Demonstrated a strong need for decent, affordable housing

Annual income equal to 30 – 50% of area median income ($17,000 – $32,450)

Good credit, good rental history and steady employment for the previous year.

Rutherford County Habitat

for Humanity (RCHFH)

families work for local

companies, live in substandard

or overpriced rental units, and

do not earn sufficient income

to qualify for conventional

mortages. They are willing to devote 300 – 400 hours of sweat

equity building their home, helping others build Habitat homes, and

attending financial management courses, just for the opportunity to

build and buy their own Habitat home.

RCHFH builds and sells homes at the construction cost (land

and building materials) to local working families earning

30% – 50% of median income ($17,000 – $32,450 per year). Homes

are not “given away,” nor are they “earned through sweat equity."

Homes are built using donated funds and volunteers provided by sponsor

organizations and sold to working families on the basis of (i) need,

(ii) ability to pay a 25-year interest-free mortgage and (iii) a

willingness to partner with Habitat and the community — all without

racial or religious discrimination.

Who are Rutherford County Habitat for Humanity FAMILIES

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Initiates and holds the mortgage on the home

Holds the first mortgage and a "silent" second mortgage for the difference between the sales price (land and materials) and appraised value at closing. This second mortgage is reduced annually at no cost to the homeowner, building equity and ensuring the homeowner does not unreasonably profit from the market appreciation of the home.

Acts as escrow agent on the mortgage (collecting and remitting property tax and homeowners insurance)

Prohibits homeowner from leasing, subleasing, assigning or transferring the home

Prohibits homeowner from pledging the property as security,or further mortgaging the property

Retains a “right of first refusal” in the event the Habitat homeowner wishes to sell the home, allowingRCHFH to repurchase the home for the amount of a bona fide third-party offer, less the remaining mortgage balances.

Abides by Tennessee law that states that all contracts for home loans must contain the following restrictive covenant: This zero interest or low interest rate loan cannot be refinanced, replaced or consolidated without the prior, written approval of the local board of directors of the nonprofit lender which financed the loan so long as this initial, zero interest rate loan is in existence.

Requires homeowner to keep the property well-maintained and in good repair

Retains the right to repurchase the home in the event of the homeowner’s death

Restrictions After the SaleRutherford County Habitat for Humanity (“RCHFH”): After being selected by a committee of local Rutherford County

Habitat for Humanity (RCHFH) volunteers using a comprehensive

screening process, partner families must:

Complete 300 hours (single parent family) or 400 hours (two parent family) of “sweat equity,” including:

50 hours completing classes in financial budgeting and homeownership

250 hours working on the construction of their own home and or other Habitat homes

Purchase the home at the cost of construction (land and materials) through a 25-year, interest-free mortgage held and collected by RCHFH

Make timely monthly mortgage payments (principal, property taxes and insurance) of approximately $380 per month

Accept a second mortgage for the difference between the purchase price and appraised value of the home at closing. This second, “forgivable mortgage" or silent mortgage is reduced each year at no cost to the homeowner as payments are made on the first mortgage – building owner equity in the home.

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Becoming an Investor is Just as Easy

The Building Rutherford initiative requires not only home sponsors,

but also a solid community commitment to build Habitat homes in

Rutherford County. Multi-year investments help fund the purchase of land

and building materials for additional Rutherford County Habitat homes.

Your organization will be welcomed as a Community, Neighborhood,

Homeowership, Woodworker, American Dream, or Supporter level investor

and accorded specific benefits and advantages.

Based on the level of investment, Building Rutherford investors are

given opportunities to provide labor to help build sponsored homes. Your

organization can structure this opportunity as a corporate team-building

exercise, community involvement or “volunteer day," church ministry activity

or just a fun day of helping neighbors help themselves.

RCHFH will help you take full advantage of the many benefits at your level

of investment in Building Rutherford and, of course, keep you informed

on all activities of RCHFH. We hope your investment will lead you to a full

Home Sponsorship at some future date. But for now, we would love to

welcome you as in investor in this important initiative.

Becoming a Home Sponsor is Easy

Rutherford County Habitat for Humanity (RCHFH) will lead you through the

planning stages, help you organize your volunteers, introduce you to your

Habitat family, schedule your build and assist you every step of the way.

Don’t worry that you’ve never built a house before (or even swung a hammer!),

we’ll help you, just like you are helping a hard-working Rutherford County family

realize their dream of homeownership.

If your organization has the financial means to sponsor a home but may not

have a sufficient number of volunteers, RCHFH can match your organization

with labor provided by another Building Rutherford investor organization.

Your support of Building Rutherford translates directly into homes built and lives changed far beyond Rutherford County.

Benefits of Investing in Building Rutherford

RCHFH offers sponsors the opportunity to direct their tithe to a specific country or region in which HFHI builds homes. If not directed, Building Rutherford tithes will be sent to Habitat for Humanity Mozambique, Uganda and Tsunami stricken areas for families in need and especially to build homes for families caring for orphans impacted by HIV/AIDS or other illnesses.

Building RutherfordReaches Far Beyond Rutherford County

RCHFH is an affiliate of Habitat for Humanity International (“HFHI”). As part of its affiliate agreement, RCHFH tithes a portion of its funding to HFHI to build homes for needy families in developing countries. When a Rutherford County Habitat home is sponsored, the resulting tithe is often sufficient to fund at least one additional home for a family in an impoverished country.

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25 – Year Impact of 145 New & ExistingHabitat Homes

Local Government Fees & Taxes

City & County property tax (average annual taxes = $800 per home) $ 3,190,000 City & County recording fees (recording fees = $700 per home) 101,500

$ 3,291,500

Utilities

Electric (annual revenues = $1,200 per home) $ 4,350,000 Television (annual revenues = $720 per home) 2,610,000 Telephone (annual revenues = $360 per home) 1,305,000 Water & Sewer (annual revenues = $600 per home) 2,175,000 Water Tap Fees (tap fees = up to $5,500 per home) 797,500

$ 11,237,500

Insurance Premiums

Property & Casualty Insurance Premiums $ 3,443,000 (average annual premium = $950 per home)

Title Insurance Premiums 146,740 (average homeowner & mortgage premiums = $1,012 per home)

$ 3,589,740

Economic Impact of Rutherford County Habitat for Humanity

From our founding in October 1989 to June of 2012, Rutherford County Habitat for Humanity built 110 new homes in partnership with lower-

income, working families in our community. In Fiscal Year 2011-2012, nine new homes were completed.

Under the four-year Building Rutherford initiative, RCHFH will add 45 additional homes to the community. Soon totaling 145, Rutherford County

Habitat homes will continue to produce measurable economic benefits for local businesses, churches and governments in our community.

Over the course of the 25-year mortgages, 145 Rutherford County Habitat for Humanity homes will generate over $32,000,000 in economic benefits for our community:

Impacting Our Local Economy

Type of Economic Activity

Spending Generated Due to Savings from Rent (increased disposable income)

Groceries $ 1,832,859 Restaurants 971,395Household Furnishings and Supplies 1,177,267Clothing / Apparel 736,208 Vehicle Purchase & Operation 3,725,014Healthcare/Personal Care 1,852,846 Entertainment 1,085,324Education 210,536Life & Personal Insurance 94,608Savings & Retirement 953,406Other 1,280,536

$ 13,920,000 RCHFH homeowners pay a monthly mortgage payment of approximately $330, which is an average of $320 less than their previous monthly rent payment of $650. Spending figures are calculated using current spending habits of Rutherford County residents earning $25,000 – $30,000 per year.

Source: AECOM Economics | Raleigh, NC | www.aecom.com

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Rutherford County Habitat for Humanity850 Mercury Boulevard | Murfreesboro, TN 37130

Phone: 615.890.5877 | Fax: 615.890.2393

Email: [email protected]

Website: www.RCHFH.org

A Four-Year, $3,875,000 Initiative of Business, Church & Community Groups Partnering with Working Families to Build Affordable Homes and Rebuild Neighborhoods in

Rutherford County

Rutherford County for Humanity is a § 501(c)(3) organization.


Documents

Building Rutherford 2012 Campaign Brochure