Through volunteer labor, management expertise and tax-deductible
donations of money and materials, Habitat builds and rehabilitates homes with the help of
the homeowners. Houses are sold at not profit to partner families, and no-interest
mortgages are issued over a fixed period. Costs of homes differ relative to
location, labor, land, and materials. Currently, a Habitat house in the United
States costs homeowners an average of $35,000. Small monthly mortgage payments,
including taxes and insurance are repaid over an average of 20 years and deposited into a
revolving account which supports the construction of more houses.
How does the partnership with
homeowners work?
Habitat is not a giveaway program, but it is a joint venture in
which each homeowner family is required to invest "sweat equity" hours not the
construction of their home. This reduces the cost of the house, increases the pride
of ownership among family members, and fosters the development of positive relationships
with other persons.
How are the families selected?
Families apply to local Habitat projects. A family selection
committee chooses homeowners based on their level of need, their willingness to become
partners in the program, and their ability to repay the loan. Every project follows
a non-discriminatory policy of family selection. Neither race nor religion is a
factor in choosing the families to receive Habitat houses.
Habitat for Humanity is growing rapidly. There are over 600
affiliated projects in the United States and more than 100 other projects in 30 other
countries. From its beginnings in 1976 until the summer of 1994, over 30,000 homes
have been built by the Habitat ministry.
How does Habitat work with the government?
Habitat does not 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 the acquisition of streets, utilities, land
or old houses needing rehabilitation-provided those funds have no provisions attached
which would violate Habitat's principles.
