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P.O. Box 423, Atwater CA 95301

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Today’s PresentersToday’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 HumanityHabitat for HumanityAn Equal Housing Partner at work in

Merced County

Building HOPEBuilding

COMMUNITIESOne NAIL at a

time…

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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.

Vision Vision SStatementtatement

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HistoryHistory 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 PurposeStatement 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 Who Qualifies for a Habitat for Humanity Habitat for Humanity

Home?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 Income Guidelines 20072007

Family Size Minimum Income Maximum Income

Monthly Yearly Monthly Yearly

1 person $900 $10,800 $1,500 $18,000 

2 persons $1,029 $12,350 $1,715 $20,583

3 persons $1,158 $13,900 $1,930 $23,166

4 persons $1,287 $15,450 $2,187 $26,250

5 persons $1,391 $16,700 $2,319 $27,833

6 persons $1,491 $17,900 $2,486 $29,833

7 persons $1,591 $18,250 $2,652 $31,833

8 persons $1,700 $20,400 $2,833 $34,000

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NeedNeed

Present housing is not adequate

Unsafe or unhealthy living conditions

High cost burdens Overcrowding

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Ability to PayAbility 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 Willingness to PartnerPartner

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 Where Does Habitat Build?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 SitesHabitat 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 Location Discretion PolicyPolicy

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 DesignHome 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 Buyer’s Design OptionsOptions

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 PlanSample House Plan

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Example of New Home Example of New Home ConstructionConstruction

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Example of New Home Example of New Home Construction ContinuedConstruction Continued

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How Does Habitat Set How Does Habitat Set the Price?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 RestrictionsResale Restrictions

Habitat has the first right of refusalShared appreciation occurs over loan payoff periodLong term commitmentBorrowing against equity in the home is not allowed

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Partnership Partnership ResponsibilitiesResponsibilities

Sweat equity Timely payments Continuing partnership Owner occupied housing – house

cannot be used as a rental

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Sweat Equity 101Sweat 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 ProcessApplication Process Application

Give second address, must be able to contact you if eligible.

Attachments for income verificationPhotocopies only; originals will not be accepted; we will not make copies

Application DeadlineDecember 1, 2007, 5:00 p.m. Incomplete applications will not be considered.

Home Visit limited to those who pass through initial assessment

Written ResponseThis is a long & tedious process – be patient

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Application Attachments

1.- Two most recent wage stubs for all adult wage earners2.- Verification of other income sources (SSI,

TANF,AFDC,etc.)3.- Copy of 2005 & 2006 filed Federal tax return with all

attachments4.- Copy of 2005 & 2006 W-2’s/1099’s for all adult

applicants and household members5.- Copies of last month’s utilities (electricity,gas,

telephone, etc.)6.- Copy of rental agreement or rent check7.- Copy of bank statement

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Common Common MisconceptionsMisconceptions

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 Principle Sources of SupportSupport

Individuals 23%Churches 2%Groups 18%Trusts 6%Grants 1%Fund raisers 1%In-Kind/Contributions 15%Donated Auto Sales 13%Mortgage Payments 19%

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Other ServicesOther Services Housing Counseling Home repairs and

modifications Partnering with other

community resources

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Volunteers making Volunteers making progress at a HFHS Job progress at a HFHS Job

SiteSite

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A HAPPY HABITAT FOR A HAPPY HABITAT FOR HUMANITY HUMANITY

HOMEOWNERHOMEOWNER

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Thank you Gateway Thank you Gateway Community CHURCH Community CHURCH

FOR THE USE OF YOUR FOR THE USE OF YOUR FACILITY.FACILITY.

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Other Community Other Community ResourcesResources

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 County383-4242

www.unitedwaymerced.org