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Habitat for Humanity Halton

By Nicole Zummach

BURLINGTON, ON // Most Canadians would probably admit that they take for granted the roof over their head. But for many people, the struggle to maintain shelter and security is very real. For more than three decades, Habitat for Humanity has been responding to that reality by offering families in need a hand up...not a handout. Kathrin Delutis, executive director of Habitat for Humanity Halton, is very clear about that. Her organization partners with families, giving them the opportunity to own their own home and break the cycle of poverty that so often continues from one generation to the next.

CharityVillage spoke with Delutis about what Habitat Halton has accomplished in the few short years since it was established in 1999, including its selection as a Donner Award winner in 2006, its successful efforts to attain financial sustainability, and its impact in the local community.

CharityVillage: What was the impetus for bringing Habitat for Humanity to the Halton region?

Kathrin Delutis: It got started by one of the churches in the area, which is not uncommon for Habitat. The Christian community is certainly a huge supporter and is very involved with Habitat internationally. So it is not uncommon for many of the affiliates to get started through the churches in their community, initially. Although we certainly have our Christian roots, we are non-denominational; we serve all faiths. And our volunteers are from a wide variety of faith communities as well.

CV: Clearly, volunteers are vital to the work you do. What does your volunteer team look like?

On a day-to-day basis throughout the year, we have approximately 500 individuals volunteering with us on committees, in our Restore, and in our office. During the build season we would add about 2,000 volunteers.

CV: How many homes are you building each year?

KD: We built our first home in 2000, a second home in 2002, and another in 2003. In 2005, the house we built was a fully accessible home because they had a child in a wheelchair. In 2006, we did a single home, and this past summer we built our first semi-detached - so, two homes in Burlington - and this year we will build three in Georgetown.

CV: What accounts for the jump to three homes this year?

KD: A lot of it is the availability of land. Our biggest challenge is finding affordable land. So we were fortunate that we were able to purchase a site through the municipality of Halton Hills about two years ago.

CV: Are you paying current market prices or is some consideration given to the fact that you are a charity?

KD: It varies. Of the ten homes we will have completed by the end of 2008, we've had two pieces of property donated - one was donated by the City of Burlington, and the second was donated by a developer. All the other pieces of property we've purchased at, I would say, fair market value. In the past, we've spent about $60,000 for a single lot. Then, on a single home we are paying about $30,000 in development fees to the municipalities. So before I put a shovel in the ground, on average I've spent $90,000. The reason our homes are affordable is because of the volunteer support that we get. The homes are built by volunteers and that is what saves us.

Last year, on the homes that we built here in Burlington, it cost us $155,000 to build a three-bedroom home, and for the four-bedroom home about $160,000. So that is what the family's first mortgage would be. But we had the homes appraised and they were appraised at $115,000 over and above that. Therefore, our families are paying the mortgage on what it really costs us to build the home - the $160,000 - versus the $275,000 or $280,000 [appraised value].

CV: So, what prevents these families from selling the homes for a profit?

KD: Our program is a hand up, not a handout. These families are purchasing the homes from us at 0% down and 0% interest and Habitat personally holds the mortgage. Most of our mortgages are now about 35 years. The family also has a second mortgage on the home for the difference between the first mortgage and the fair market value that the home is appraised at. So, in the case of the homes built last year, the second mortgage would be for $115,000 or $120,000. That second mortgage is also held by Habitat and it just kind of sits there. Once the family has paid two-thirds of their first mortgage off, we start to forgive that second mortgage. And by the time they pay that first mortgage in full, the second mortgage will be forgiven in full.

CV: Aside from your building projects, you also operate ReStore. Tell me about that.

KD: Yes, that is our business initiative and our number one fundraiser. In 2007, our ReStore generated $777,000. What that means for us is that it covers all of our operational expenses. So when I go to someone like Genworth Financial, who was a house sponsor last year, and ask them for X number of dollars, 100% of their donation goes to our build program because our ReStore revenues cover all of our operational expenses.

Our ReStores are managed by volunteers. We do have a very small staff in the ReStore, but over 60 hours a month are volunteer hours. And the volunteers do everything from cleaning and pricing and running our cash registers, to helping with our salvage program.

CV: Do you do any long-term evaluation of your projects and the families you help?

KD: We know that the impact isn't so much on the families that we put in the homes today, but on the generations to come. When we put a mom and a dad and three small children into a home where there is heat, and they don't have to pick between turning the lights on and putting food on the table, these children do better in school, they do better socially, and as a result we have moved them out of that poverty cycle. So, as they become young adults, we know today that they are becoming much more productive in the community.

CV: Does the program ever fail? Do things ever not turn out for Habitat families?

KD: We have been very fortunate; that hasn't been the case for us. Here in Canada, I only know of one affiliate that had to work with a family to move them out of the home. There are definitely times when some of them will struggle again, but the job of the affiliate is to work with them. Our turnover rate of people moving out of the homes because they haven't been able to be successful, and maintain employment, and maintain a home and pay a mortgage is nonexistent here in Halton, and it certainly isn't common across Canada.

Part of that is because we spend a great deal of time selecting our families; we call them partners. They have to agree to partner with us and provide 500 hours of sweat equity. That means they have to help build their own home, and they have to help build other people's homes.

CV: What advice would you give to other organizations striving for excellence?

KD: The key is to be accountable to you volunteers and donors. If you are always thinking about being accountable to those stakeholders, then all of the other pieces of providing excellence fall into place.

Kathrin Delutis is the executive director of Habitat for Humanity Halton and has spent the past 10 years working with nonprofit organizations in leadership and management capacities.

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