Strategic Overview

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Strategic Overview
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Habitat Business Model

• Donors finance land and volunteer construction
• Partner family buys with no-interest mortgage
• Habitat trains and supports Partner family
• Mortgage payments to Habitat fund future homes
• Donations become an endowment for Habitat

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Habitat Business Model
Charlottesville Median Income
--- 100 Area Median Income --- 80 HUD
Definition Low Income --- 75 PHA Home
Ownership --- 50 HUD defined as Very Low
Income Habitat Home Ownership --- 25
66,700 53,000 33,000 16,500 0
Teachers, Policeman, Fireman Medical Assistants,
Day Care Workers, Bank Tellers, Food Service,
Check-out line employees, Custodial.
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Habitat Business ModelTypical Cost per Unit

• 50,000 Land and Site Development
• 60,000 Building Materials
• 15,000 Supervision
• 3,000
  Administrative Costs
• 128,000 Subtotal
• 42,000 Value
  Created by Habitat
• 170,000 Appraised Value Per Unit

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Habitat Business ModelFinancing

• 90,000 Interest-free first mortgage to
  Habitat
• 12,000 Second mortgage to VA DHCD for down
  payment
• 15,000 Third mortgage to City of
  Charlottesville
• 53,000 Forgivable fourth mortgage to Habitat.
  
• 170,000 Appraised Value Per Unit
• Non-Amortizing Mortgage

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Habitat Business ModelMortgage Value

• Appreciation sharing agreement
• The first time the house is sold outside the
  family, Habitat receives 50 of appreciation in
  value
• Continue serving future generations
• Better stewardship of donor money

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Habitat Business ModelTypical Homeowner Payments
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Habitat in CharlottesvilleHome Construction
Schedule, Completions
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Habitat in CharlottesvilleMajor Supporters
J. Aron Charitable Foundation Junior League of
Charlottesville Keswick Community
Foundation Martha Jefferson Hospital Oak Hill
Fund Oakwood and ReBuild the Coast
Foundation (John Grisham) Perry
Foundation University of Virginia Fund Wachovia
Foundation Westwind Foundation
250 West Holdings LLC Arthur Watson BAMA Works
(Dave Matthews) Bank of America Foundation Blue
Moon Fund Charlottesville Area Community
Foundation Conboy - Duke Foundation Dominion
Foundation GE Foundation Genan Foundation
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Habitat in CharlottesvilleUniversity of Virginia
Sponsors
Inter-Greek Council at UVa 02, 06 Madison House,
Office of Volunteerism UVa Habitat Chapter UVa
Tele-Health House 06, 07 UVa Health Systems,
Heart Center UVa Womens Center
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Habitat Business ModelVolunteers

• More than 1,400 community volunteers worked on
  Habitat homes in FY 04-05
• Thus far in 2006 we have utilized an average of
  125 work days / week from volunteers in
  construction alone
• An estimated 6,000 volunteers have worked on our
  sites since 1991, at least one time

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Habitat in CharlottesvilleSources of Funds
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Habitat in CharlottesvilleUses of Funds
84 of Funds Go Into Our Programs
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Evolution of Strategic Models

• Traditional Habitat Model
• Single family on one lot
• No longer feasible in Charlottesville or
  Albemarle
• Still building in Buckingham, Greene, and Louisa

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Evolution of Strategic Models

• Forced to higher density by land cost
• Preserve as much of Traditional Model as possible
• Beginning of more attractive street elevations

Attached Model, Housing Two Families
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Evolution of Strategic Models

• Neighborhood Model Paton Street in Fifeville
• Mix of Traditional and Attached Models
• Requires larger parcels of land and City approval
• Requires attractive look to fit the area
• Include some green and sustainable elements

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Evolution of Strategic Models
Neighborhood ModelPaton Street in Fifeville
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Evolution of Strategic Models

• High Density Mixed Income
• Large number of units
• Mix of apartment, condominium, and town house
  units
• Open space and day care
• Embrace green design
• Mixed income enhances community social value
• Exterior is consistent with mainstream
  developments
• Interior has volunteer friendly construction
  design

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Evolution of Strategic Models

• High Density Mixed Income
• Habitat partnership with complementary
  organizations
• Jefferson Area Board of Aging (JABA)
• Buys low income apartments for the elderly
• Resident income too low for Habitat mortgage
• Piedmont Housing Alliance (PHA)
• Buy units for the 40,000-66,000 income range
• Commercial builders
• Build upscale units for open market sale

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Sunrise Park

• Transform a Low Income Trailer Park
• Into Our First
• High Density Mixed Income Community

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Sunrise Park Options
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Sunrise Park Options
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Sunrise Park Options
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Sunrise Park

• Habitat will leverage volunteer labor to
  construct all the affordable units for Habitat
  and PHA
• Phased demolition and construction to avoid
  displacement of residents
• Habitat will sell units built for PHA above cost
  to generate cash to construct Habitat units and
  recover land and overhead costs
• Upon completion of Sunrise, Habitat will re-cycle
  this capital into the next community
• Sunrise Model is scalable and transferable
  nationally

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Sunrise ParkFinancing
Income (in thousands) 700 Donations thus
far 1,000 Needed to Start 1,000 House
Sponsors 1,300 Sale of Units to PHA 5,200
Sale of Market Units 9,200 TOTAL Expe
nses (in thousands) 1,200 Land
300 Architecture and Engineering 500 Site
development 5,000 Construction
7,000 TOTAL
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Sunrise Park Next Steps

• Form Advisory Team
• Assemble Design Team
• Develop Financial Analysis Model
• Secure Additional Funding from Foundations and
  other Donors
• Project Planning

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How Home Sponsorship Works

• Any group, company, church, foundation or
  individual can sponsor a Habitat home, providing
  at least 50,000 to the affiliate for purchase of
  building materials for the home.
• Habitat provides the remaining 60-70,000 for
  land purchase site development and supervision
  for the full house cost.
• Habitat selects, trains and supports the Partner
  family.
• Volunteers from the sponsoring group join with
  the Partner family and Habitat supervision to
  build the home.
• Partner family buys the home with no-interest
  mortgage.
• Mortgage payments return to Habitat to fund
  future homes.

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House SponsorshipsWomen Build
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House SponsorshipsWomen Build Purpose

• Empower local women and girls with skills in
  teamwork and leadership.
• Provide an opportunity for women and girls to be
  active participants in the issue of sub-standard
  and affordable housing in our community.
• Teach women and girls to construct a home while
  working alongside a low-income family.
• Provide simple decent affordable housing to
  working families in our community who may not
  otherwise have the opportunity for homeownership.

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House SponsorshipsWomen Build Quick Facts

• Women Build began in 2001 and has constructed
  four homes in five years with volunteers.
• More than 500 women have volunteered to work on
  these homes, providing learning opportunities for
  volunteers.
• Participants include girls and women from all
  area high schools, CATEC students, University of
  Virginia students and athletic teams, local
  businesses, womens clubs and many other
  interested individual women.

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House SponsorshipsYouth United
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House SponsorshipsYouth United
Involving area youth in knowledge and insight
into poverty housing, providing experience in
team building, leadership, communication,
fundraising and construction of a Habitat
home.
In February of 2006 Youth United completed their
first home, with the Goffney family, on Rock
Creek Road.
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House SponsorshipsSchools Involved in Youth
United
Albemarle High School Charlottesville High
School Covenant School Monticello High School Red
Hill Elementary School St. Annes Belfield Stone
Robinson Elementary School Tandem Friends School
Walton Middle School Western Albemarle High
School Yancey Elementary School
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