Habitat for Humanity of Tuolumne County

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Habitat for Humanity of Tuolumne County

Habitat for Humanity of Tuolumne County (HFHTC) is an independent affiliate of Habitat for Humanity, International. Like International, HFHTC is dedicated to eliminating substandard housing. Habitat believes every man, woman and child should have a decent, affordable home where they can live in dignity and safety. As an independent affiliate, we are responsible for obtaining our own funding for operations and to build homes. Most of our funding comes from local donations and grants. We typically build 1000-1200 square foot, single-family homes with three bedrooms, 1½ bathrooms. Habitat sells the home to a selected family through an interest-free mortgage for the cost of materials used in building the house. The mortgage payments go into the Building Fund which is used exclusively in the construction of more homes.

The Need for Affordable Housing in Tuolumne County

Although there has been a substantial increase in the number of new homes built in Tuolumne County in recent years, there remains a critical need for housing that is truly affordable for low-income families. All of the families Habitat serves fall into the category of low-income. To qualify for a Habitat house, a family must have an income that is 25-50% of the median county income.

In 2008, Sonora Area Foundation compiled a comprehensive report of Tuolumne County community indicators. The following is an excerpt from the section on Housing: "Local real estate transactions indicate that no families of median income can afford the current median home price."

How the Habitat Program Works

Finding the land

Property values in Tuolumne County have skyrocketed in the past decade. Although the following figures are for homes, not for vacant land, they are indicative of what has happened with all real estate prices. In Tuolumne County the price of a median home rose from $189,000 in 2002 to $349,000 in 2006; an 85% increase. Even with the economic downturn that we are currently experiencing, the decrease in home prices from their peak in 2006 to February 2009 has been only 20%: from $349,000 to $280,000.

Through the generosity of private landowners we have succeeded in obtaining affordable land: the first three lots were donated outright. The last three lots were discounted to us. When the land is donated or discounted, the seller is allowed to take a tax deduction for the amount donated because of our non-profit status. Even with these tax incentives, our biggest challenge, without question, is finding affordable, buildable land.

Funding the program

After land acquisition, HFHTC’s next biggest challenge is funding. As an independent affiliate, we are responsible for raising all our operating and program expenses. This is a challenge in a county of only 57,000 inhabitants with the median per capita income at $28,750.

Funding sources for our current house include: individual donors,Sonora Area Foundation, Wachovia Foundation, WestAmerica Bank, and various fundraising activities such as raffles and tool sales. We also received a grant from PG &E’s Solar Habitat Program and are using that money to install a solar system on the Habitat home we are currently building. Businesses that have provided in-kind donations (or discounts) of goods or services for the current house include: Don Grover Architectural, Brian Selby Energy Design, Inter-Mountain Truss, Hallmark Painting, Sierra Lighting, Consolidated Electrical Distributors, Whirlpool Corporation, Ferguson Enterprises, J&D Plumbing, ABC Supply, JS West Lumber, Yale Locks, and Valspar Paint.

Picking a family

As soon as we have obtained a lot on which to build, we schedule and announce public information meetings. At these meetings, prospective applicants receive applications to become a Habitat partner family.
Neither race nor religion is a factor in choosing the families who purchase Habitat homes.

The first criteria for consideration is that the applicant be in the low-income bracket which is defined as 25-50% of the median income of Tuolumne County. Then, HFHTC’s Family Selection Committee chooses potential homeowners based on their:

Level of Need

This is established through a home visit. Our mission is to wipe out substandard housing. This can be anything from a problem with mold to a family of five living in a one-bedroom apartment.

Ability to Repay the Loan

HFHTC is the mortgage holder for all the homes we build. Therefore we run a credit check on all applicants to establish that they can pay their mortgage, homeowners’ insurance, and property taxes.

Willingness to Become Partners in the Program.

This is the family’s commitment to perform 500 hours of sweat equity. Some of the eligible activities are assisting with construction, attending homeowner workshops and seminars, and helping Habitat in fundraising activities.

Building a home

Habitat homes are built primarily with volunteer labor. We also receive many donations of goods from local suppliers. This keeps the cost of building the home to a minimum. For instance, the last home we completed has a mortgage of $128,000 and an appraised value of $253,000. It is worth noting that the homeowner pays property taxes on the appraised value.

How HFHTC Benefits the Homeowner and the Community

Compared to the general population of homeowners, the most immediate benefit partner families derive from owning a Habitat house is a decrease in housing expenses. Volunteer labor and the donation of goods and services enable Habitat to build homes more economically and are therefore more affordable for the partnered families. As a consequence, Habitat is able to offer families interest-free, thirty year mortgage loans with payments at or below what they were paying for rent.

Statistics provided by Habitat for Humanity, International, indicate that partnership with Habitat and owning a Habitat home positively affect low income families in several important ways; which,in turn benefit the community.

A family that owns a home is better able to provide stability for their children.
As the new homeowners make mortgage payments and build equity (a form of forced savings), they accumulate wealth previously unavailable to them as non-homeowners.
As they become more established in their homes and neighborhoods, the family’s sense of well-being, dignity and pride flourish.
As a result, these families are more likely to become involved in and contribute to civic activities by voting in local elections and by working to help solve local problems.
The most tangible benefit to the community is the increase in property tax revenue. The Habitat partner families pay property taxes on the appraised value of their home, a source of revenue the county would not have had from these same families as renters.

Most importantly the school aged children of homeowners show greater potential than their counterparts who reside in poorer housing conditions:

They are more likely to realize increased educational and employment opportunities because they are more likely to stay in school.
They have better test scores and are more apt to become employed as adults.
They also have a much greater chance of becoming homeowners themselves.
Additionally, the children living in homes owned by their family seem to be healthier. They are less likely to have mental health or behavioral problems or to suffer from asthma, viral infections or anemia - conditions often associated with substandard housing.

The community benefits when its citizens benefit.

A Brief History of HFHTC

HFHTC incorporated in 1999 as the 72nd affiliate in California. In the beginning, the affiliate performed owner-occupied home rehabilitations. When a group of lots were donated to our affiliate in 2001, we became committed to building or rehabilitating at least one house a year. To date, HFHTC has built six homes and has completed three home rehabilitation projects. These projects have provided simple, yet high quality and affordable housing in Tuolumne County for fourteen adults and twenty-eight children.

In 2006, in an effort to provide consistency and better overall organization, HFHTC hired their first paid employee, a part-time office manager: Betsy Harden. That same year, HFHTC used a professional construction manager for the first time. In 2007, two significant events occurred:

In October 2007, HFHTC was selected by HFHI to participate in its Organizational Development Program (ODP).

Working with Melinda Mylet, our ODP consultant, HFHTC identified key areas where we needed improvement. Thanks to the efforts of Ms. Mylet and the HFHTC Board and staff, we now have a working fund development plan and a five-year strategic plan - valuable and necessary business tools.

In November 2007, Roger and Judy Haughton donated $100,000 to HFHTC.

The Haughtons, and Habitat International’s Leadership Development Officer, Diana Juhlin, from came to Sonora to present HFHTC with a letter pledging $100,000 to HFHTC. This donation provided an infusion of cash and energy at a key time for HFHTC.

We completed House #5 in July of that year and had great momentum from the success of that build. Local Habitat volunteer builders were ready to start on House #6, but with no land and limited funds, we were not able to begin. With this incredibly generous donation, we were able to buy land and begin construction on House #6.

Upon a recommendation from the ODP Consultant, the HFHTC Board of Directors decided that in order to provide continuity in the execution of the strategic plan, HFHTC needed an Executive Director. In May 2008, Ms. Harden accepted the promotion to Executive Director.

Where HFHTC is now

HFHTC has established a database of approximately 500 volunteers. Of these individuals, sixty are currently active in a variety of capacities ranging from board members to builders. There is only one paid employee with HFHTC, the Executive Director.

In October of 2009 HFHTC with the aid of an interest free loan form HFHI purchased 36 home sites known as the Parrots Ferry Village. We will start accepting applications in 2010 followed shortly by the construction of two homes.

HFHTC is in the process of developing the Business Plans for opening a Habitat ReStore in 2010. A Habitat Restore is a retail store that sells new and used building supplies and tools (collected from Tuolumne County businesses and private citizens) at 10% to 50% of their new selling price. This store will provide our affiliate with a year round funding source to help us continue to provide affordable safe homes to our community.

HFHTC has developed a strong working relationship with area citizens, merchants and contractors. Over the course of the six home building projects, many different kinds of goods and services, including architectural plans, all types of building materials, appliances and countless hours of labor have been donated to Habitat by local businesses and private citizens.

It’s all about Community Helping Community.

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