Fact Sheet

Habitat for Humanity of Iredell County was started in April, 1985, by an ecumenical group of Christians, who realized that many lower income or poverty stricken people in our area needed assistance with finding decent, affordable housing. They, along with Habitat for Humanity International, seek to eliminate poverty housing from the world and to make decent shelter a matter of conscience and action. By having needy and affluent people work together in equal partnership, Habitat builds new relationships and a sense of community as well as new housing and esteem.

How Does it Work?

Through volunteer labor, management expertise, and tax-deductible donations of money and materials, Habitat builds homes with the help of the homeowners, and with sponsoring organizations such as churches and businesses. Houses are sold to the selected families at no profit (0%), and no-interest mortgages are issued over a fixed period. Cost of a home in Statesville runs around $85,000. Small monthly mortgage payments, including taxes and insurance, are repaid over 20 to 30 years. Tax and insurance money is deposited into an escrow account for the payment of these expenses; while the principal monies go into a Fund for Humanity account, which supports the building of other houses, as well as a 10% tithe to Habitat International each year. (This tithe goes towards the building of homes in Guatemala, currently that is costing an average of $3,000 per home.)

As of July 2008, there are 57 completed Habitat houses in Statesville and infrastructure has begun on Fourth Creek Village, a Habitat neighborhood that will house 16 Habitat families.

Who controls Habitat for Humanity?

Habitat is controlled by a Board of Directors, who make all decisions and By Laws concerning Habitat for Humanity in Statesville. They in turn answer to Habitat for Humanity International, which has set the main guidelines that all affiliates must follow. The local Executive Director manages the affiliate, works with the President to assist the Board in making decisions, and serves as liaison with Habitat International.

How are Donations Distributed and Used?

Donations are distributed as designated by the donor. All gifts designated for a certain project, or with certain stipulations are forwarded to that area, or restricted for a certain project. Any undesignated gifts are used where needed: for example, for construction materials to build new homes; a small portion to hire labor for specialized tasks, such as plastering sheet rock and carpet installation; and for administrative support.

Each homeowner makes a payment determined by the number of years in the mortgage, and by the cost of taxes and insurance on the property. The portion of the payment to cover taxes and insurance is escrowed by Habitat and paid when due. The mortgage portion of the payment goes towards the building of new Habitat houses, since Habitat frequently contributes a portion of the cost of most houses, and towards administrative costs, including staff salaries.

What Investment do the Homeowners put in the Program?

Habitat is not a giveaway program, but is a joint venture between the homeowner, the sponsor, and Habitat. Each homeowner family is required to invest "sweat equity" hours into the construction of their homes, and in other Habitat houses. The sweat equity required by HFH of Iredell -Statesville is currently 300 - 500 sweat equity hours. Each family also pays a down payment of $500 before moving into the house.

Habitat families represent the diversity of Iredell County: all races, all religions (or no religion), married, single, one child or many. Some families have members who have attended college, some do not. 99% of Habitat children graduate from high school or get their GED. 18% attend college after graduation, and 6% of those graduate with honors. Homeowners work hard, maintain their employment and their homes, and pay taxes.

How are Families Selected?

Families hear about local Habitat projects, hearing about Habitat through posters, radio spots, newspaper articles, and other housing agencies. Interested people fill out a preliminary application. The Family Selection committee (made up of volunteers) chooses homeowners based on their level of need, their willingness to become partners in the program, and their ability to repay the loan. The families are interviewed in their current home to determine need, enthusiasm, and willingness to accept homeowner responsibilities. Neither race nor religion is a factor in choosing the families to receive Habitat houses.

What support do families receive after they become homeowners?

Habitat homeowners must attend and complete financial counseling, home ownership classes and parenting classes.

How does Habitat work with the government?

Habitat does not generally accept government money for construction of new houses, renovation or repair of existing houses, or the general operating expenses of projects. Habitat does accept funds for infrastructure and for the acquisition of land, providing those funds have no provisions attached which would violate Habitat's principles. Habitat is a non-profit organization.

How widespread is Habitat for Humanity?

Habitat for Humanity has over 2000 affiliated projects located in all 50 states, D.C., Guam, Puerto Rico, and more than 100 other projects in 100 other countries.