FAQ
historical background
Habitat for Humanity International was founded in 1976 in Americus, Georgia by Linda and Millard Fuller. The program developed from the concept of "partnership housing", based on Christian principles, where those in need of adequate shelter work side by side with volunteers from all walks of life to build simple, decent houses.
In 1984 Habitat's most famous volunteer, former U.S. President Jimmy Carter, along with his wife, Rosalyn, participated in their first Habitat build project. Their personal involvement in Habitat's ministry brought the organization national visibility and sparked interest in Habitat's work across the nation.
Habitat for Humanity Canada (HFHC) was born in 1985, with the formation of the first Canadian affiliate in Winkler Manitoba. In early 1988 an HFHC national office was established, which is currently located in Toronto, Ontario.
Habitat for Humanity Windsor-Essex (HFHWE) incorporated in 1994 and has built 64 homes in Windsor and Essex County since that time.
In 1984 Habitat's most famous volunteer, former U.S. President Jimmy Carter, along with his wife, Rosalyn, participated in their first Habitat build project. Their personal involvement in Habitat's ministry brought the organization national visibility and sparked interest in Habitat's work across the nation.
Habitat for Humanity Canada (HFHC) was born in 1985, with the formation of the first Canadian affiliate in Winkler Manitoba. In early 1988 an HFHC national office was established, which is currently located in Toronto, Ontario.
Habitat for Humanity Windsor-Essex (HFHWE) incorporated in 1994 and has built 64 homes in Windsor and Essex County since that time.
how does Habitat for Humanity work?
Through volunteer labour, efficient management and tax-deductible donations of money and materials, Habitat builds simple, decent houses with the help of the homeowner (partner) families. Habitat houses are sold to partner families at no profit and financed with affordable, no-interest mortgages. The homeowners' monthly mortgage payments go into a revolving fund, which is used to build more houses.
Habitat for Humanity is not a give-away program. In addition to mortgage payments, each homeowner invests hundreds of hours of their own labour into the building of their house and the houses of others.
Habitat for Humanity is not a give-away program. In addition to mortgage payments, each homeowner invests hundreds of hours of their own labour into the building of their house and the houses of others.
where do mortgage payments go?
Mortgage payments from Habitat homeowners go directly into a trust to build more Habitat homes. For every 35 homes we build in Windsor-Essex, we can build one home per year from the mortgage income alone. Our model empowers families to help families.
how can I become a volunteer?
General volunteer information is available from the Habitat for Humanity Windsor-Essex office. Habitat needs volunteers to work with in the office, in our ReStore and on our builds.
what can I do to help?
- Make a tax deductible donation to Habitat for Humanity Windsor-Essex
- Participate in Habitat fundraising events
- Habitat for Humanity Windsor-Essex needs people to spread the word about Habitat
- Volunteer at our ReStore
- Involve your company or your faith community
- Make a planned gift to HFHWE
- Join one of our committees
the concept
who qualifies for a home?
The three criteria to qualify for a Habitat home are (1) need for affordable housing, (2) ability to repay a Habitat mortgage and (3) willingness to partner with Habitat.
Need for affordable housing is defined by a family income that is below the government-set Low Income Cut-Off (poverty line) for their particular region, and existing living conditions that are inadequate in terms of structure, cost, safety or size. The ratio of shelter expense to total income is also factored.
Ability to repay a Habitat mortgage requires that the family has a stable income sufficient to cover the monthly mortgage payments and other expenses that come with home ownership.
Homeowners must demonstrate a willingness to partner with Habitat by contributing 500 hours of volunteer labor towards the building of their home.
Need for affordable housing is defined by a family income that is below the government-set Low Income Cut-Off (poverty line) for their particular region, and existing living conditions that are inadequate in terms of structure, cost, safety or size. The ratio of shelter expense to total income is also factored.
Ability to repay a Habitat mortgage requires that the family has a stable income sufficient to cover the monthly mortgage payments and other expenses that come with home ownership.
Homeowners must demonstrate a willingness to partner with Habitat by contributing 500 hours of volunteer labor towards the building of their home.
how are families chosen?
Families are chosen on the basis of the above criteria. Family selection occurs by way of an application process. Please visit the Home Ownership tab on the website for more information.
what do families contribute and what do they receive in return?
In addition to mortgage payments, each homeowner invests hundreds of hours of their time to assist in the building of their home. In return, Habitat homeowners are given the unique opportunity to buy a home through an interest-free mortgage, thus gaining substantial equity they would not have if renting. They also acquire a safe, affordable place to live and the pride of ownership.
how do we acquire land?
Acquiring affordable land has been one of Habitat for Humanity's greatest challenges. Habitat seeks the assistance of governments at all levels in acquiring suitable donated or cost-reduced land. Habitat also relies on individual donors for land donations. In many cases affiliates must purchase land.
how are the homes built?
Through volunteer labour, efficient management and tax-deductible donations of money and materials, Habitat builds simple, decent houses with the help of the homeowner. Habitat houses follow standardized design criteria that maintain the "simple and decent" archetype.
Most Habitat projects are single dwellings or semi-detached homes, but Habitat for Humanity Canada is expanding its build projects to include restoration and refurbishments, condominiums and town home style projects.
Most Habitat projects are single dwellings or semi-detached homes, but Habitat for Humanity Canada is expanding its build projects to include restoration and refurbishments, condominiums and town home style projects.
how does this program benefit the families and communities in the long-run?
Over time, a family's equity in their home increases. Habitat families also often see an improvement in their financial situation since the percentage of their income being spent on housing remains at 25%. Prior to purchasing a Habitat home, many of these families are spending over 50% of their income on rent.
A safe, healthy living environment contributes to the positive growth and development of children. Habitat has recorded many examples of children within Habitat families becoming healthier, completing a post-secondary education and establishing successful careers.
Communities benefit as former renters become homeowners who contribute to the tax base. Habitat build projects also offer an opportunity for community members, of all walks of life, to come together and work side by side in a meaningful way.
As the poverty cycle is broken, and a family's financial situation improves their dependence on local social services is decreased. In addition, pride of ownership leads to a renewed sense of confidence, and along with their stable, long-term housing arrangement, they become long-term contributors to the community and the local economy
A safe, healthy living environment contributes to the positive growth and development of children. Habitat has recorded many examples of children within Habitat families becoming healthier, completing a post-secondary education and establishing successful careers.
Communities benefit as former renters become homeowners who contribute to the tax base. Habitat build projects also offer an opportunity for community members, of all walks of life, to come together and work side by side in a meaningful way.
As the poverty cycle is broken, and a family's financial situation improves their dependence on local social services is decreased. In addition, pride of ownership leads to a renewed sense of confidence, and along with their stable, long-term housing arrangement, they become long-term contributors to the community and the local economy
the economics
how are the homes funded?
Habitat builds homes with volunteer labour and as much donated or cost-reduced material as possible. Fundraising takes place to help offset expenses of materials, services and land when they are not available through donations. Financial support is received from individuals, corporations, service groups and the faith community.
Mortgage payments from current homeowners are retained by the affiliate, which holds the mortgages, to fund future projects.
Mortgage payments from current homeowners are retained by the affiliate, which holds the mortgages, to fund future projects.
average cost per square foot?
The average cost per square foot of Habitat houses in Canada is about fifty dollars. This cost reflects building materials and services only. Any costs associated with acquiring land would be in addition to this. Labour is volunteered.
what does a Habitat house cost?
Prices differ depending on the costs of land, labour and materials. Nonetheless, the monthly mortgage payments are made affordable for our Partner Families.
Habitat houses are affordable for low-income families because there is no profit included in the sale price and no interest is charged on the mortgage. The average length of a Habitat mortgage in Canada is approximately 25 years.
Habitat houses are affordable for low-income families because there is no profit included in the sale price and no interest is charged on the mortgage. The average length of a Habitat mortgage in Canada is approximately 25 years.
who holds the mortgages?
Mortgages are held by Habitat for Humanity Windsor-Essex until the mortgage is paid off.
how are donations distributed and use
Donations, whether to a local Habitat affiliate or to the National Office, are used as designated by the donor. Gifts received by HFHC that are designated to a specific affiliate or project area are forwarded to that area.
how does Habitat for Humanity relate to government
Habitat for Humanity accepts government funds for the acquisition of land or houses in need of rehabilitation.
how is this a hand up, not a hand out?
Habitat houses are sold to families, not given to them free of charge. In addition, families help to build their own home. By building homes at low cost, requiring no down payment, and not charging interest on the mortgage, Habitat for Humanity is able to provide an opportunity, or a "hand up", to buy a home for families that would not otherwise qualify for a conventional mortgage.
the revolving fund for humanity
The homeowners' monthly mortgage payments go into a fund that is used to build more homes. The more homes that exist, the more cash flow there is available for further building. This "revolving fund for humanity" fuels exponential growth in the number of houses that are built over time.
what happens when income/financial position of families change?
The income of all Habitat homeowners is reviewed on an annual basis. If income increases, monthly mortgage payments are adjusted to remain at 25% of their monthly income. If income decreases, usually due to a temporary situation such as a job loss, similar adjustments may be made to maintain affordability during this period of decreased cash flow.
Habitat for Humanity is committed to educating and supporting partner families toward successful homeownership. This commitment has resulted in a low mortgage default rate of about 1% in Canada.
Habitat for Humanity is committed to educating and supporting partner families toward successful homeownership. This commitment has resulted in a low mortgage default rate of about 1% in Canada.
what if the family decides to sell their house at a profit, just months after taking
possession?
The Habitat mortgage is designed to keep monthly payments low, encourage long-term commitment and prevent short-term profit. This is done by way of a second mortgage. The first mortgage reflects the actual cost of the house, which is usually far less than its fair market value. The second mortgage reflects the difference between the actual cost and the fair market value. When the first mortgage has been paid, the family has the option of allowing the second mortgage to remain dormant until they sell or move out.
If a family decides to sell before the first mortgage is paid, both mortgages are owing and must be paid to Habitat.
Habitat for Humanity has the right to purchase the property if the homeowner wants to sell.
If a family decides to sell before the first mortgage is paid, both mortgages are owing and must be paid to Habitat.
Habitat for Humanity has the right to purchase the property if the homeowner wants to sell.
what happens if the family does not make their mortgage payments?
Habitat makes every effort to work with the homeowner families to avoid foreclosure through financial counseling, renegotiated mortgages, etc. Strategies such as payment plans and deeds in lieu of foreclosure are implemented when possible.
While foreclosure is the last resort, sometimes it cannot be avoided. Ignoring homeowners' delinquencies can be unfair to other homeowners.
While foreclosure is the last resort, sometimes it cannot be avoided. Ignoring homeowners' delinquencies can be unfair to other homeowners.
