The following are frequently asked questions about how SGV Habitat for Humanity provides homes for purchase by working, but low-income families. If you need more information about these questions or have other ones please call the Habitat office at (626) 792-3838.

How does Habitat for Humanity differ from commercial affordable housing developers?
How do families qualify to purchase a home from Habitat for Humanity?
Who chooses families to build and buy Habitat homes?
Why must families pay homeowners’ association dues?
Why must families repay a mortgage loan from SGV Habitat?
How are Donations Distributed and Used?
Why hasn’t SGV Habitat for Humanity built more homes for working, low-income families living in substandard or overcrowded housing?
Are funds and materials or equipment donated to SGV Habitat for Humanity tax deductible?
How can I Become a Volunteer?
If I give to Habitat for Humanity International (HFHI), will my donations help build Habitat homes in the San Gabriel Valley or eastern communities in the City of Los Angeles?
What are the greatest needs now of SGV Habitat for Humanity?
How can I contribute funds to SGV Habitat for Humanity?
Can families sell their Habitat homes?

How does Habitat for Humanity differ from commercial affordable housing developers?

Habitat does not make any profit and does not charge interest on its home loans.  Also, Habitat for Humanity helps qualified working low income families build and buy a home, but many commercial developers provide only rental units in low-income housing developments.

How do families qualify to purchase a home from Habitat for Humanity?

To qualify to purchase a home, families must:

• Live in substandard or overcrowded conditions, or in units which do not have separate bedrooms for their boys and girls;

• Have no more than 80% of the median average income for families of their size in Los Angeles County;

• If physically able, contribute 500 hours of “sweat equity” (manual labor) to the construction of their home and others in the same development.  They also must commit to helping build future Habitat homes;

• Pay a one percent down payment;

• Be able to pay up to 30% of their gross monthly income, usually about $1,000, for housing costs which include: repayment of a long-term (20-30 year) interest-free mortgage loan from Habitat; property taxes; utilities; insurance; and homeowners’ association dues;

• Be first time home buyers;

• Attend intensive home ownership skills training before and after moving into their home;

• Be American citizens or permanent legal residents of the U. S.

Preference is given to families that live in the cities where Habitat homes are built.

Who chooses families to build and buy Habitat homes?

SGV Habitat for Humanity has a committee of very experienced, knowledgeable people who thoroughly review the written applications of all families who wish to build and acquire a Habitat home.  Extensive interviews and home visits are part of the selection process.

Why must families pay homeowners’ association dues?

SGV Habitat for Humanity has found from the beginning that setting up condominium projects managed by homeowners’ associations with maintenance of common areas and long-term replacement of expensive items, such as roofs and driveways, paid for by HOA fees has kept all of our housing developments in great condition.  These monthly fees are put into a trust account for future major replacement costs.  This prevents homeowners from facing sudden, huge monetary assessments for such expenditures.

Also, when people belong to an association responsible for normal maintenance and long-term major replacements and help pay for them, they have a real stake in maintaining the common area.  Homeowners’ associations have CC&Rs which set the rules for everyone’s benefit, like no loud music late at night or no unleashed dogs in common areas.  Everyone who buys a Habitat home has a real say and stake in what the rules are and their fair and equal enforcement.

Why must families repay a mortgage loan from SGV Habitat?

Families must repay a long-term, no interest loan for two reasons:

• Having to pay a substantial amount to purchase a home, including a loan, motivates people to protect their investment.  As a university president once said, “No one washes a rental car;” and
  
• Habitat continuously uses the repaid loan funds to help pay for construction of more decent and affordable homes.

How are Donations Distributed and Used?

Donations are used as designated by the donor. Any undesignated gifts are used where most needed.

Why hasn’t SGV Habitat for Humanity built more homes for working, low-income families living in substandard or overcrowded housing?

There is extremely little buildable residentially zoned land in our service area, which encompasses 28 communities in the San Gabriel Valley and eastern areas of the City of Los Angeles.   The very limited available land is extremely expensive to purchase.  Construction costs also are very high.  So, despite large amounts of donated building materials and equipment, funding help from cities such as Glendale, large numbers of construction volunteers, and contributions of various services, it now costs $100,000 in cash to build a Habitat home in this area.

To build more homes in the future, SGV Habitat for Humanity has shifted from building low-density developments to high-density ones.  The first of these is the planned eleven unit development on Kenwood Street in Glendale.  Hopefully, construction of these homes will start in 2007.  However, under terms of our Exclusive Negotiating Agreement (ENA) with the City of Glendale for these homes, we must raise $1.1 million dollars during 2006 in order to proceed.

Are funds and materials or equipment donated to SGV Habitat for Humanity tax deductible?

Yes, the amount of donated funds and fair market value of contributed materials, appliances, equipment, etc. is tax deductible under Federal and California law, because SGV Habitat for Humanity is a 501(c)(3) non-profit organization.  Also, volunteer mileage, the cost of telephone calls and other out-of-pocket expenses paid for by volunteers are tax deductible.

How can I Become a Volunteer?

Volunteer information is available on this web site (See Members & Volunteers) or call SGV Habitat's office at (626) 792-3838. You may also email our office volunteernow@sgvhabitat.org.

If I give to Habitat for Humanity International (HFHI), will my donations help build Habitat homes in the San Gabriel Valley or eastern communities in the City of Los Angeles?

No, a gift to HFHI will only help build homes in other parts of the U. S. or other countries UNLESS you specifically designate in writing that the donation is for SGV Habitat for Humanity.  If you so designate, keep a copy of the document.

 

But the need right here for decent, affordable homes for purchase is extremely large and urgent.  And funds sent to HFHI designated for our use take months to reach here.  So we hope that you will contribute directly to SGV Habitat for Humanity and we will use the money immediately. 

 

SGV Habitat tithes to Habitat for Humanity International, so a gift given to this local affiliate helps build homes here and around the world.

What are the greatest needs now of SGV Habitat for Humanity?

• First - money!  Lots of it!  We need a total of  $1.1 million this year to proceed with construction of eleven homes on Kenwood Street in Glendale

• Second - All kinds of donated construction materials and equipment (including 70 kinds of lumber!) are needed to complete the Palmer Avenue homes.

• Third – Donations of all kinds of new or used building materials, appliances, equipment, etc. are needed for resale in our Builder’s Surplus Store.  The net proceeds from such sales are used to subsidize the cost of constructing homes.  If you have very large items or a substantial amount of things to donate, we usually can pick them up.  Please call our store manager to get details.

How can I contribute funds to SGV Habitat for Humanity?

• You or your organization can write a check to SGV Habitat for Humanity.  We also take credit cards, and a growing number of regular donors have arranged for their monthly donations to be processed automatically.

• You can join the Carpenters’ Club whose members make monthly, quarterly and yearly pledges of funds.

• Your organization can put on a fundraising event.

• You can buy things at our Builders Surplus Store at bargain prices.  The store is located in the rear of our offices at 770 North Fair Oaks Avenue in Pasadena.  It is open Tuesday through Saturday from 9:00 a.m. to 5:00 p.m.

Can families sell their Habitat homes?

Yes, they can.  But Habitat effectively encourages long-term home ownership and discourages speculation by imposing covenant restrictions on sales.  During the first five to ten years after families move in, they must repay loans for down payment assistance.  Also, any city contributions for land, secured by a silent second trust deed, must be repaid, plus a share of any equity, if the home is sold within 45 years.  Finally, if, during the course of the 20 to 30-year mortgage loan a family offers their home for sale, Habitat has the right to buy the home for the amount paid on the loan by the family to the date of sale.  It can then be made available for purchase by another qualified family.  As of May 2006 no SGV Habitat for Humanity family has sold their home.

A Habitat home is a hand up, not a handout!