How are Habitat houses Funded?
Habitat for Humanity-Lima Area, Inc. is a non-profit, fully incorporated charitable organization. Donations provide capital for building houses to be sold (not given away) to a carefully-screened family on a non-profit, no-interest basis.
A house built by Habitat for Humanity-Lima Area, Inc. is valued at approximately $100,000 giving the dignity of home ownership to selected families. To build a house funding must be in place from a variety of sources:
• Principal from the mortgage payments of current homeowners.
• Designated contributions from individuals and sponsoring groups. For example, churches have formed cooperating coalitions that are committed to raise funds that provide a significant portion of the cost of a house.
• Undesignated contributions from individuals.
• In-kind donations - businesses donating materials and labor.
• Grants from various agencies both private and governmental, such as the Dienstberger Foundation in Delphos, as well as the Ohio Development Services Community Housing C.H.I.P. Grant.
• ReStore revenues, above expenses, also are used.
For each house built, a sponsoring group is sought who will contribute a minimum of a third toward the cost. Grants and homeowner payments provide the balance of the cost of the house. The monetary contributions pay for purchased materials and some services requiring special skills. Much of the labor, however, is donated by volunteers and the recipient family. All mortgage payments are recycled back into the agency's commitment to build more houses. Seed funds come from tax deductible gifts from individuals, churches, corporations, and service organizations. Other gifts may be in the form of land, materials, and volunteer services. A tithe of all donations is sent to Habitat's International program for housing construction in an overseas program.
Who Qualifies for Habitat Housing?
Qualified families live in substandard housing, are lower income (40-80% of Lima median family income) but have a steady source of income to meet the monthly mortgage payment, and are willing to invest significantly in the preparation for home ownership and the construction of their house. This investment is more popularly known as "sweat equity." Qualified families would not qualify for a conventional mortgage loan.
How are Families Selected?
The Family Selection Committee reviews each application carefully leading up the final step: a home interview. Applicant families are then recommended by the Family Selection Committee to the Board of Directors for final approval.
What are the Conditions of Sale?
Houses are sold to the Partner Family at no profit with a 20, 25, or 30-year 0% interest mortgage loan, depending on the income of the family. Participation in home ownership training classes and the Lima First Home Program can earn qualified families grants that provide the down payment.
What Kind of Partnership Possibilities are Available?
God may be calling you, your church, your business or service club to do something greater than you ever thought you could do. Consider these ideas for putting your faith into action.
PRAY - Keep the ministry of Habitat for Humanity always in your prayers. Churches may also participate in the International Day of Prayer and Action for Human Habitat, designed to put decent shelter on the hearts and minds of all people. Bulletin inserts and other materials are available to help you plan your observance each year in September.
VOLUNTEER - When houses are built, volunteers with differing skills or no-skills-but-a-willingness-to-serve attitude are needed to help. Most workdays are on Saturdays beginning by 8:00 a.m. through mid-afternoon. Volunteer for a day or two on each house built or organize a group from your business, church, service club, or extended family to work a day. Offer time to work at the Habitat ReStore. Regular daily, weekly, or monthly volunteers are needed for numerous tasks. Volunteers are also needed to work on the Board of Directors or one of numerous committees that work behind the scenes to make possible the more visible work of constructing the houses.
To volunteer or get more information, click here (links to Volunteer Signup), call the Habitat office (419-222-4937) or email Mark Suderman (links to my email firstname.lastname@example.org), volunteer coordinator.
DONATE - While Habitat for Humanity-Lima Area has received significant gifts from businesses and individuals, the backbone of financial support comes from the many persons willing to donate smaller amounts to the ministry. A primary means of supporting Habitat for Humanity is "No Place Like Home Club", an effort to have sustainable income by enlisting persons in the larger Lima Area to give $10.00 a month ($120.00 annually) or more.
SPONSOR A WHOLE HOUSE - Depending on the location a full house sponsorship a house sponsorship ranges from $50,000 to $80,000. In the past denominational groups, including Catholic parishes and institutions, Lutheran churches, Mennonite churches, and United Methodist churches have joined together to sponsor houses.
APOSTLES BUILD - A new model is emerging called "An Apostles Build." This is an ecumenical cluster of churches joining together to provide both funding and volunteers for a house build. We are currently working to develop an Apostles Build Project Team with representatives from area churches. Contact us for more information.
BUSINESSES - Individual businesses or groups of businesses may also sponsor houses. A number of years ago Sprint Telephone (now Centurylink), American Electric Company, and Dominion East Ohio Gas joined together to provide half the cost of a house sponsorship.
Will I Make a Difference?
As a Christian ministry Habitat for Humanity, whether in its international organization or in local affiliates such as Habitat for Humanity-Lima Area, has grown into a powerful witness for the gospel of Jesus Christ. It is fitting that the church, Christ's body in the world, should be a primary partner in Habitat's work around the world. Working with Habitat for Humanity can transform the lives of individuals and churches. Many people develop a deeper relationship with God, and congregations often experience a new sense of purpose and empowerment.
Is Habitat a Handout?
Habitat is not a "give-away" program. We are a “hand up, not a handout.” Partner families invest hundreds of hours of their own labor (sweat equity) in building their home and the homes of others. Their monthly mortgage payments go into a revolving "Fund for Humanity" that is used to build more houses. Additional funding comes from tax deductible donations of money and materials. Volunteers provide much of the house-building labor, working with the partner families.
How does Habitat Build Community?
Donors and Volunteers become partners in the work of building houses and building lives. Houses are also built in clusters, often resulting in overall improvement of the larger neighborhood where they are built. Habitat for Humanity is a grass-roots movement. Concerned citizens organize local Habitat for Humanity affiliates. Affiliates direct and control their local Habitat building projects. Each affiliate is responsible for fund-raising, family selection, house construction, and more.
How Can You Become a Habitat Partner?
As an individual or as a group (business, club, church, etc.) you can help make this vision a reality. You can provide families in need with hope for the future through your partnership with Habitat. To donate your time, resources and talents to Habitat for Humanity, contact:
Habitat for Humanity, Lima Area, Inc.
550 W. Elm Street,
Lima, OH 45801-4730