Habitat for Humanity seeing fewer applicants

Habitat for Humanity is struggling to find families to become owners of new homes. The Kalamazoo Gazette Reports:

A sluggish economy has led to fewer families seeking to partner with Kalamazoo Valley Habitat for Humanity to build their own homes, said Don Jones, the organization’s executive director.

“Families have dialed back and are unwilling to sign on for a major financial commitment,” Jones said.

It’s the first time in a decade that Kalamazoo’s Habitat affiliate is without the desired number of families to partner with to build new homes, said Ann Kilkuskie, the organization’s development director. To close that gap, the agency has stepped up efforts to promote the affordable-housing program to those who qualify.

Kalamazoo Habitat is not the only city which is struggling:

The Battle Creek Area Habitat for Humanity also has struggled in the last 18 months “to get a full slate of homeowners for our houses,” said Art Pearce, the agency’s executive director. Officials with Habitat for Humanity of Michigan say the majority of the state’s 77 affiliates are experiencing a similar downturn in applicants.

The fear of buying a Habitat-built home seems somewhat misguided, as the homes are often more affordable than many apartment complexes which would offer much less. The idea of a long-term financial commitment could be scaring families, though logically they have to be paying for rent someone else if they need a home anyway. Additionally, some of Habitats requirements are not be possible for families who have to work a lot of hours to support their income.

“When you do the Habitat math and factor in a zero-percentage mortgage, a house sold at no profit and down payment assistance, you’re looking at a $450 a month house payment,” Jones said. “It’s the same math whether it’s tough or great economic times.”

To qualify to partner with Habitat to build a home, individuals must meet certain criteria, including the ability to make monthly house payments and a commitment of between 300 and 500 hours of “sweat equity” hours toward their home. Jones said participants also must attend classes on home ownership and financing and fall within income guidelines set by the U.S. Department of Housing and Urban Development.

Read the full Kalamazoo Gazette article:

http://www.mlive.com/news/kalamazoo/index.ssf/2010/02/economy_stalls_affordable-hous.html