1. SERVING PEOPLE. PRESERVING HOUSES. REVITALIZING NEIGHBORHOODS

2. What is A Brush with Kindness? A Brush with Kindness (ABWK) is Habitat’s House Preservation initiative that focuses on: Minor Repairs Painting Landscaping 2

3. What is A Brush with Kindness? Projects usually last 1-3 days. Helps bring pride and dignity back to homeowners and communities. ABWK is an expansion of your construction services. 3

4. Where does ABWK fit in Habitat? Habitat Construction Products Repairs RehabsNew Homes Critical Home Repair WeatherizationHome Preservation 6

5. Popularity

6. Repair Categories Three Repair Categories : – Home Preservation (ABWK) – Weatherization – Critical Home Repair Often, multiple repair types done on same house. All repairs should be reported individually on Housing Production Report. Work on one home only counts as one family served on Affiliate Statistical Report. 7

7. Repair Definitions Home Preservation – Exterior only - Minor repair, landscaping & painting. Weatherization: – Improves energy efficiency, air quality, and comfort. – Pre-work energy audit – Homeowner education Critical Home Repair: – Extensive interior and/or exterior repairs. 8

8. Neighborhood Revitalization Vision 4 Neighborhood Revitalization Initiative affiliates serve more families by responding to community aspirations with an expanded array of products, services and partnerships, with the mission of empowering residents to revive their neighborhoods and enhance the quality of life.

9. Neighborhood Revitalization Vision NRI focuses on: empowering residents-new concept hasn’t really been a part of what we do before Revive neighborhoods – instead of building one house here and one house there. Enhanced quality of life. Historically our main metric was houses built or families served. an expanded array of products To officially be an NRI affiliate, you need to sign a pledge and work within a specific neighborhood. If you are interested in learning more about becoming an NRI affiliate, please email nri@habitat.org and a field staff person will call you within 2 weeks. NRI serves neighborhoods with an expanded array of products - housing products, financial education, family services, organizational development., etc. Construction Products are not part of NRI. They are simply part of the expanded array of products that affiliates can use to help serve communities.

10. Why Expand into ABWK? 7 Benefits of A Brush with Kindness: 1.Increase the # of families living in safe, decent, affordable housing. 2.Increase volunteer opportunities for current volunteers. 3.Expand base of volunteers by providing a different type of activity. 10

11. Why Start ABWK? Benefits of A Brush with Kindness: 4. Keep current sponsors engaged. As another option in your sponsorship menu. 5. Increase # of new sponsors. 6. Enhance Habitat’s broader Neighborhood Revitalization Initiative. As first step in developing community partnerships 11

12. Why Start ABWK? Benefits of A Brush with Kindness: 7. Helps your Affiliate stay in compliance. To achieve good standing the affiliate must…………. » Serve at least one family per year through one of the following housing interventions: New home Rehabilitated home Repaired home Weatherized home » Min. of one family served through Rehab or New home every 3 years 12

13. How does ABWK work? 13 Follows same model that all Habitat services follow. – Not a parallel or separate service. We serve individuals with: – A demonstrated need – Ability to pay – Willingness to partner

14. How does ABWK work? Our spectrum of services are made affordable by: – Using donated labor and materials. – Selling affordable services with no profit. – Providing no-interest loans if necessary. – Using our Revolving Fund for Humanity to fund future projects. 14

15. How does ABWK work? With ABWK we still must provide: – Family Selection – Family Support – Financing – Volunteer Recruitment and Management – Resource Development – Construction Management Most of these services easily translate to ABWK. 15

16. Policies & Procedures How does ABWK work? Financing, Family Support, Marketing, Construction Planning, Family Selection, Fund Raising, Volunteer Management, Pricing & Payment Work Site (Single story, Multi-family, Repair, Rehab, Recycle) 2/24/2011Construction Technologies16

17. Adjustments Amount of time and capital in ABWK much less than new construction. Two areas of adjustment: – Family Selection – Financing These policies and procedures are adjusted according to your affiliate’s and community’s needs (while staying within the Affiliate Agreement). 16

18. ABWK Family Selection Key to a successful ABWK project. Demonstrated Need: – Selected homes must be owner-occupied.* – Must be a need for construction services to be provided: » Inspection of property, income guidelines, referrals » Inability to perform repairs themselves: age, disability, illness, etc. 17

19. ABWK Family Selection Willingness to partner: – Sweat Equity still an important foundation of Habitat eligibility. – ABWK Sweat Equity minimum: 8 hours » Half should be completed before main construction day. – As with new construction, adjustments can be made if homeowner unable to work alongside volunteers. 18

20. ABWK Family Selection Ability to pay: – Habitat is a Hand Up, not a Hand Out. – Income eligibility still important. – Minimum income level can be lowered. – Minimum AMI should not be lowered below 20%. Homeowners still need enough income to pay for services or repay a small repair loan. 19

21. Position of HFHI on Pricing and Payment for Repair Products “Partnering with families is foundational to our work and our ministry. Financial contributions give families a sense of pride in what they accomplished and it gives them a truer sense of ownership, whether it be of the house or of the improvement that’s being made to the house. For our ministry to be sustainable and indeed to expand, we have to stick with the principle that says we offer a hand up, not a hand out. That's not always the easiest way to execute our programs, but payment for repair products is critical to our long-term viability and the mission to serve even more families in need of a safe and affordable home to live.” - Larry Gluth, Senior Vice President of United States and Canada

22. ABWK Pricing Determining Costs: – Formula for determining cost of ABWK project is the same formula used for new houses Cost of purchased building materials $_________ Value of donated building materials $_________ Insurance, permits, direct costs $_________ Contracted labor $_________ Administrative costs $_________ Total Project Cost $_________ 22

23. ABWK Payment Payment agreements more flexible than traditional mortgage agreements. Length of ABWK payment agreements: 1-3 years (generally). Payment agreements, in addition to homeowner’s existing housing costs, not to exceed 30% of income. Every attempt should be made to fit the payment to the partner family’s ability to pay. 20

24. ABWK Payment Three main options: – Immediate payment in full at time services are rendered. – For projects $3,000 or less, an unsecured zero interest payment agreement (promissory note). – For projects more than $3,000, a secured zero interest loan or payment agreement. Consider providing pre-payment incentives. Strong Family Selection helps ensure loan repayment. *When an affordable housing organization provides full funding for services, cost recovery from the homeowner is not required. 21

25. Lead Paint Lead based paint present in homes build before 1978. EPA - RRP Rule Certified Renovator needed – Affiliate can become Certified Firm. Hazards occur while paint is disturbed (prep work). Many Affiliates have trained group of lead paint volunteers. 23

26. Valspar Valspar is underwriter for ABWK Valspar paint is FREE Gifts in Kind Catalog Can now order less than 240 gallons 24

27. Youth Involvement Youth under the age of 16 can work ABWK. – Under age 14: need policy in place – 14-15 year olds: » Painting, landscaping, clean up (no ladders/scaffolds) » Cannot be present when active construction taking place – 16-17 year olds: » Can be present on active construction site » Same activities as 14-15, but can also operate power driven machinery (lawn mowers) Youth cannot be present when lead paint exposed. 25

28. Youth Involvement Youth are valuable ABWK volunteers. School groups ( HFH chapters), Youth United, & church youth groups Entire families can volunteer. Youth groups can fundraise and volunteer for same project. 26

29. ABWK Process Summary (just like new construction) Register with HFHI’s ABWK department Fund Raising Marketing Family Selection Scope of work/Homeowner Agreement Clearly communicate with homeowner Schedule volunteers Plan and implement construction Closing ceremony/dedication Family Support/Cost Recovery 27

30. ABWK Resources ABWK department is here to help! ABWK@habitat.org 1-800-HABITAT x 5060 Program Specialist: SaraBeth Sellers ssellers@habitat.org Manager – Housing Product: Walter Fields wfields@habitat.org 28

31. ABWK Resources – My.Habitat 2.0 29