What is Habitat for Humanity?
Habitat for Humanity is an ecumenical housing ministry that seeks to eliminate poverty housing from the world and make decent shelter a matter of conscience. Houses are built or renovated using as much volunteer labor and donated materials as possible. Houses are sold to partner families at cost with no down-payment and are paid for with a no-interest mortgage over a period of 25 years. The payments are used to build more homes for other low-income families.
Habitat for Humanity of East Central South Dakota, which serves Lake and Moody counties, became one of more than 1,700 U.S. affiliates of Habitat for Humanity International in 1999. Many volunteers apply their time, talents and labor to the infinite variety of jobs that are necessary to the successful completion of a Habitat home. Many church and civic organizations as well as hundreds of interested individuals have donated money, building materials and food for the workers. The expertise of a number of building contractors has also been made available at no cost.
How are Families Selected?
Habitat for Humanity is not a “giveaway” program. The partner families repay the cost of the homes and each family is required to complete “sweat equity” hours in construction of their own or other homes. A family selection committee chooses partner families based on their level of need, their ability to repay the loan and their willingness to partner.
Need: Families are considered for a Habitat home if their present housing is not adequate and if they are not able to obtain adequate housing through other conventional means. The number, age and gender of children compared to the number of bedrooms in their present home is also taken into consideration.
Ability to Pay: Families actually buy their homes from Habitat and must demonstrate their ability to pay the monthly mortgage payment. Habitat does not make a profit and does not add interest to the loan. No down payment is required and the monthly payment includes the mortgage payment, an escrow amount for real estate taxes and insurance and an amount for future maintenance.
Partnering: Partner families must assist in constructing their home or homes of others. This is called “sweat equity” and may include painting, providing food for volunteers, working a fundraiser or other approved activities. Partner families must complete 300 hours of sweat equity. Families are responsible for maintenance and repairs of their home from the time they move in.
