1 P.O. Box 423, Atwater CA 95301

2 Today’s Presenters  Jan Sorge, President, HFHMC  George Gallaher Selection Committee HFHMC Special thanks to our board members and volunteers for their assistance today.

3 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 Statement

4 History  Became Habitat affiliate in 1993  13 families live in HFHMC homes  1 home is currently in the predevelopment stage  1 family housed in 2014  Potential to build 2 homes in

5 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

6 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

7 Income Guidelines 2015 Family Size Minimum Income Maximum Income Monthly Monthly 1 person $1,312 $2,188 2 persons $1,617 $2,491 3 persons $1,921 $2,796 4 persons $2,225 $3,100 5 persons $2,529 $4,017 6 persons $2,833 $3,708 7 persons $3,137 $4,012 8 persons $3,442 $4,317

8 Need  Present housing is not adequate  Unsafe or unhealthy living conditions  High cost burdens  Overcrowding

9 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

10 Willingness to Partner  Sweat Equity – 500 hours minimum  Ability to take on homeownership responsibilities  Providing timely and complete information  Public nature of the program

11 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.

12 Habitat Home Sites  Le Grand (two on E. Marshall St.)  Merced 27 th St. (Rehab.)  Fig Ave.  Mc Swain Road  Jonathan Court  W. Sixth Street  W. Eleventh Street  S. “T” Street

13 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

14 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

15 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

16 Sample House Plan

17 Example of New Home Construction

18 Example of New Home Construction Continued

19 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

20 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

21 Partnership Responsibilities  Sweat equity  Timely payments  Continuing partnership  Owner occupied housing – house cannot be used as a rental

22 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

23 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 September 1, 2015, 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

24 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 2013 & 2014 filed Federal tax return with all attachments 4.- Copy of 2013 & 2014 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

25 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

26 Other Services  Housing Counseling  Home repairs and modifications  Partnering with other community resources

27 Volunteers making progress at a HFHS Job Site

28 A HAPPY HABITAT FOR HUMANITY HOMEOWNER

29 Thank you Boys and Girls Club of Merced for the use of your facility.