Family Selection Criteria
The selection of families who purchase homes from Habitat is done using criteria in a way that does not discriminate on the basis of race, sex, color, age, handicap, religion, national origin, family status or marital status. Nor does it discriminate because all or part of income is derived from any public assistance program.

How are the partner families selected?
Families apply to local Habitat affiliates. 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 affiliate follows a nondiscriminatory policy of family selection. Neither race nor religion is a factor in choosing the families that receive Habitat houses.

An Overview of Family Selection
Habitat is a nonprofit, ecumenical Christian housing ministry that seeks to eliminate poverty housing from the face of the earth by partnering with low-income families to build adequate, affordable housing that is sold to the family without profit or interest. We have three selection criteria that we use to objectively make selections: (1) need for adequate shelter; (2) ability to pay; and (3) willingness to partner.

Family Selection Criteria
1)Need for Adequate Shelter. The following factors are used to determine whether the present housing of applicants is inadequate and whether there is a need Habitat can address:

• a)Structural safety, integrity, and mechanical function. Present physical dwelling can be considered inadequate if:
  
  • i)Reparability
    
    • (1)Head(s) of household, family and friends are unable to readily repair deficiencies.
      
    • (2)Landlord is consistently unwilling to complete necessary repairs.
      
    • (3)Repairs cannot be made as documented by building inspection officials.
      
  • ii)Heating system and climate
    
    • (1)Heating system does not provide for healthful and comfortable living.
      
    • (2)A wood burning or kerosene heater is primary source of heat.
      
    • (3)Insulation is not sufficient to maintain minimal comfort even after correction.
      
    • (4)Air infiltration at doors, windows, etc., cannot be stopped even after weatherization.
      
    • (5)Gas/electric bills are consistently in excess of $150 per month.
      
    • (6)Need for a special indoor environment has developed (e.g., air purity, temperature) and present home cannot be readily adapted.
      
  • iii)Plumbing
    
    • (1)There is not a continuous supply of safe water.
      
    • (2)There is not a safe/sanitary method of sewage disposal.
      
  • iv)Electrical
    
    • (1)Supply is not reliable. Panel and service are incapable of handling load. Breakers are consistently tripping or fuses are consistently blowing after use corrections.
      
    • (2)Wiring poses a threat to safety (e.g., fire, shocks).
      
  • v)Safety
    
    • (1)Access to street, yard, parks or playgrounds is hazardous.
      
    • (2)There are unavoidable dangers to children.
      
    • (3)Immediate physical environment contains un-removable hazardous or toxic material.
      
    • (4)There is no ready means of egress from a basement bedroom.
      
  • vi)Accessibility
    
    • (1)Uncorrectable barriers to physically challenged family members exist.
      
• b)Size of living quarters. Present dwelling's size can be considered inadequate if:
  
  • i)In general, more than three family members share a bedroom.
    
  • ii)School-age children of opposite sex share a bedroom.
    
  • iii)Each family member has 100 square feet or less space in which to live.
    
• c)Temporary housing. Present living situation can be considered inadequate if:
  
  • i)Family has tentative living arrangements with relatives or friends.
    
  • ii)Family is living in a transitional housing facility or a motel.
    
  • iii)Family is living in a house that is being condemned, sold or moved.
    
  • iv)Family is losing its lease, certificate, or voucher due to uncontrollable circumstances.
    
  • v)Family is living in a car, tent or similar "quasi-homeless" situation.
    
• d)Cost of housing. Present housing situation can be considered inadequate if:
  
  • i)Family is paying more than 50% of its gross income for rent or house payment, including taxes and insurance (not including utility and phone costs).
    
• e)Upper income guideline. A family can be considered to be within our guideline if:
  
  • i)Family's total gross income, presently calculated, does not exceed 50% of the county median income based on family size. Consideration of families closely above this percentage depends on special situations. Selection Committee may recommend a family to partner with a graduated 15-18 year contract if committee feels other criteria warrant adjustment.
    

    Household Size 1 2 3 4 5 6 7 8 Ottawa County 20,500 23,400 26,350 29,250 31,600 33,950 36,250 38,600
    Household Size means all members of household, related or not related. Income means all money being received by household members (excluding earned income minors) at this time. Income includes earnings before deductions, social security, unemployment benefits, public assistance paymehts, veterans' benefits, military allotments, casino profit sharing, etc. Do not count food stamps, payments from State Emergency Relief or Child Day Care, tax refunds, or earnings of mionor child.

• f)Conventional financing. A family can be considered to meet this criteria if:
  
  • i)Family has applied for other available housing programs and been denied.
    
  • ii)Family is unable to obtain conventional financing from banks or other markets.
    
  • iii)Family has no marketable assets that could be used to obtain a conventional loan.

2)Certifying the need for adequate shelter: The following methods and resources may be used to determine actual housing need:

• a)Information given when contact sheet is filled out.
  
• b)Information given on actual homeowner application.
  
• c)Habitat "Current Housing Evaluation" completed on interview visit.
  
• d)Documents from building inspection office.
  
• e)Utility bills-verify currency of payments as well as costs.
  
• f)Rent or house payment stub.
  
• g)Medical documentation of special need.
  
• h)Evaluation by a bank loan official regarding conventional financing options.
  
• i)Total income verification from documents used to ascertain ability to pay.
  
• j)Advice from a building committee member (optional).
  

3)Additional considerations

• a)Trailers/mobile homes are not inherently inadequate.
  
• b)Habitat houses and lots may not be significantly larger than some present situations.
  
• c)Habitat site selections are made by Habitat and are not of choice to potential families.
  
• d)A reliable vehicle (asset) for transportation to and from work is appropriate.
  
• e)Living in subsidized housing does not necessarily preclude a family from consideration.
  

4)Ability to Pay: The following factors are used to determine whether applicants have resources necessary to purchase housing with Habitat.

• a)Minimum income guideline. A family can be considered to have minimum income necessary if:
  
  • i)Family has a reliable monthly income source available that is equal to approximately four times the monthly Habitat house payment. The following examples are low end:
    
    • (1)A $55,000 Habitat house sold on a 20-year (optimum length) mortgage has a monthly payment of $354 including taxes and insurance. A family would need a minimum income of $1,416 ($354 x 4) per month with a manageable debt load.
      
    • (2)A $60,000 Habitat house (average) sold on a 20-year mortgage has a monthly payment of $375 including taxes and insurance. A family would need a minimum income of $1,500 ($375 x 4) per month with a manageable debt load.
      
    • (3)A $65,000 Habitat house (larger size) sold on a 20-year mortgage has a monthly payment of $395 including taxes and insurance. A family would need a minimum Income of $1,580 ($395 x 4) per month with a manageable debt load.
      
  • ii)Family's reliable source of income is comprised of (1) employment pay; (2) public assistance; and/or (3) income revenue from assets and/or other legitimate activity. Child support payments are used in computing minimum and maximum income, and the reliability of these payments is evaluated. However, a family is not denied solely on the basis of child support (i.e., because that support may not be reliable).
    
  • iii)Debt-to-income ratio. A family can be considered to be within our guideline if:
    
    • (1)The family's total debt payment (excluding projected house payment to Habitat) does not prohibit the family from paying for childcare, food, clothing, transportation, education, health insurance and care, house maintenance and other items critical to basic living. Ideally, debt payments each month, excluding projected house payments to Habitat, should not exceed 5%-10% of family's monthly income.
      
    • (2)If you include the family's projected house payments to Habitat in your calculations, the family's monthly debt payments should not exceed 40% of the family's monthly income.
      
  • iv)Monthly payment consistency. A family can be considered to meet this criteria if:
    
    • (1)The family has demonstrated ability to make regular monthly payments for rent, utilities and other credit obligations.
      
  • v)Bankruptcy, liens and judgments. A family can be considered to meet this criteria if:
    
    • (1)The family has not declared bankruptcy within 5 years application review.
      
    • (2)The family has no liens or judgments that cannot be cleared prior to closing.
      
  • vi)Closing costs. A family can be considered to meet this criteria if:
    
    • (1)Family can potentially save a small amount of money for payment of utility deposits, homeowner's insurance premium, moving costs and/or other incidental expenses occurring at time of closing.
      
• b)Certifying the ability to pay: The following methods and resources may be used to determine actual ability to pay:
  
  • i)Information given on the homeowner application.
    
  • ii)Employment paycheck stubs.
    
  • iii)Public assistance income documents.
    
  • iv)Bank references.
    
  • v)Credit reports and credit references
    
  • vi)IRS tax forms. The board requires a verification of the family's tax returns for the last three years. Use IRS documents to confirm need, assets and accuracy of application, not income eligibility.
    
  • vii)Employment references.
    
  • viii)Records of liens and judgments.
    
• c)Additional Considerations
  
  • i)What is the effect of Habitat partnership on public assistance benefits?
    
  • ii)Consumer credit counseling for debt analysis before a decision can be made.

5)Willingness To Partner: The following factors may be used to determine whether families are willing to partner with Habitat for Humanity:

• a)Eagerness. A family can be considered willing if:
  
  • i)Family took initiative to obtain an application and fill it out completely.
    
  • ii)Family attended one of the two annual orientation meetings.
    
  • iii)Family readily engaged in a home visit.
    
  • iv)Family attempted to attend Habitat functions.
    
  • v)Family provided necessary documentation.
    
  • vi)Family members expressed desire to make this community their permanent home.
    
  • vii)Family is comfortable with credit and landlord reference evaluations.
    
  • viii)Family is willing to attend a credit counseling course
    
  • ix)Family is willing to complete the 500 hours of sweat equity.
    
  • x)Family is willing to maintain their house in an appropriate manner that will represent themselves as well as Habitat in a favorable manner.
    
• b)Understanding. A family can be considered willing if:
  
  • i)Family participated in a explanation of what Habitat is and is not.
    
    

Unfortunately, some families do not meet the Family Selection Criteria. Some may, due to their situations, be dependent on other available means for their housing. Others will achieve home ownership on their own as soon as their present situation changes (e.g. completing higher education). These families will grasp another opportunity in the next few years.

It is our belief that providing home ownership opportunities is an effective and positive way to empower low-income families. We know this requires a comprehensive program of involvement and education to achieve.

By focusing on our selection criteria and on our affiliate's goals, we remain effective because: (1) we are providing opportunities directly to families one at a time; (2) we are raising the awareness of need so that other programs are developed and used by those who fall outside our criteria; and (3) we are adding affordable housing units that are so vital to address the housing problem and the needs of people who are inadequately housed.

In addition, we understand that home ownership is not for everyone. If a family is not stable enough to handle the responsibilities of home ownership, our program might not be beneficial. Conversely, Habitat may open more doors for trapped families beyond just the door of a decent, affordable home.

Family Selection Procedure
The following is a basic outline of the necessary steps needed to secure housing with the Tri-Cities Habitat for Humanity

1.Habitat for Humanity Orientation

2.Financial Interview

3.Credit Counseling through Love In the Name of Christ

4.Return Completed Application By Deadline:

Application must be accompanied by the previous years tax return as well as current payroll stubs and proof of other income.

5.Complete 50 Hours Of Sweat Equity And Return Log Sheet To Habitat.

6.Initial Home Interview

7.Continue Sweat Equity Hours

8.Second Interview

9.Meeting With The Family Selection Committee

10.Meeting With The Board Of Directors

11.Notification Of Acceptance

This is just a brief overview; there may be more or less steps in the process depending on your specific situation. This process is not meant to deter individuals from seeking a Habitat Home. It is more of a screening process to ensure there is full understanding each step of the way, as well as determine if you meet the criteria set forth in Habitat for Humanities selection process.

Sweat Equity Policy
Habitat is founded on the principle of partnership, not profit. We give people the chance to purchase their own home. By working together on the houses, we develop a sense of partnership and mutual respect. It is as good to live in a home that you yourself have helped to build and or renovate, as it is to help build or renovate a home for someone else.

One of the responsibilities of being a Habitat Homeowner is making the monthly house payments. Another responsibility is the volunteer hours that we call "sweat equity," which is in place of a down payment. Sweat equity is one of the ways in which the cost of the house is kept at a minimum. It also provides the opportunity for learning home maintenance skills, as well as creating lasting relationships with other volunteers. Our affiliate requires 500 hours of sweat equity. (250 hours on your own home and an additional 250 hours on other habitat homes.)

The following are the details on sweat equity:

1. 50 hours must be completed before an initial interview will be conducted. The family is not approved at this point and must understand that approval is dependent upon the successful completion of 250 hours, a satisfactory interview, credit check and a majority vote by the Family Selection Committee of the Tri-Cities Area Habitat for Humanity.

2. How to acquire sweat equity hours:

• a)It is your responsibility to contact the Habitat Office each week to find out when and where we will be working. 846-1505
  
• b)The most efficient and effective way for you to complete your hours in a timely manner is to stay in touch with the Volunteer Coordinator.
  
• c)Participate in workdays as available.
  
• d)Assist in childcare for other Tri-Cities Area Habitat for Humanity families (only with approval of the Family Selection Committee)
  
• e)Enlist the help of family and friends to help with hours. Recruits under 16 years of age must be accompanied by the head of the household at the job site. Households are prohibited from recruiting from within the Habitat organization or on the job site.
  
• f)50% of the total hours must be completed by the Partner family itself.
  

3. How to keep a record of sweat equity hours:

• a)Sign in and out on the Family Sweat Equity Log Sheet (must be actual hours worked) and have it initialed by the Construction Supervisor or Board member on the site.
  
• b)Keep a list of your hours on your personal "Sweat Equity Log Sheet."
  
• c)Your "Sweat Equity Log Sheet" should be mailed monthly with your mortgage payment. This is an important step in tracking your hours to fulfill your agreement with Habitat. Send this to: Tri-Cities Area Habitat for Humanity, P.O. Box 707, Grand Haven, Michigan 49417.
  

4. What is the required number of hours? (500 total, 250 on your Habitat home, 250 on other Habitat homes or related TCAHFH projects and activities)

• a)50 hours before you become eligible for the selection process (including interview).
  
• b)200 additional hours before you will be offered a home.
  
• c)250 additional hours must be completed within 2 years to fulfill your agreement with Habitat for Humanity.
  

5. Any special arrangements must be by agreement with the Partner Family, the Family Selection Committee, and the Board of Directors.

Reasons why you could be denied a home.
Habitat's only grounds for rejection are listed below:

Lack of need for adequate shelter, due to:

• Sufficient income to obtain conventional or government assisted financing.
  
• Currently living in adequate housing
  
  

Lack of ability to pay for a Habitat home, due to:

• Insufficient income.
  
• Too much debt to pay for a Habitat house
  
• History of inability to meet financial obligations
  
  

Lack of willingness to partner with Habitat, in:

• Not completing the application process
  
• Unwillingness to accept Habitat's program of sweat equity
  
  

Please realize that not getting a home the first year does not mean you have been rejected. The Tri-Cities Area Habitat for Humanity will receive many applications for only a couple homes. If you are denied a home for cause, you will be notified in writing as to why. If you are not selected for a home this year, but there is no problem with your application, you will be encouraged to re-submit your intentions for a home next year. You will only be asked to update your application to ensure any necessary changes are made.

NOTICE. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission, Washington, DC 20580.

The best way to fail is to not even try! If you do not take the time to complete your hours, you will not have the chance to partner with Habitat. It is that simple!