Office & Training Center (OTC) brochure

1. Gearing Up For
More Change

2. Dear Supporters,
Not many would disagree that the first decade of the 21st century
can be described as one of abnormal turbulence. It has come in the form of
natural disasters, economic crisis, wars, and political strife and has affected
us all in one form or another. Coupled with advancing technology we have
experienced an unprecedented rate of change.
Every day we read or hear about “change” and how it has become a
way of life in every organization that is striving to survive and grow. With
all the “change” you have witnessed we wanted to share with you how it
has impacted our homeowners, operations and facilities and how we are
transforming our organization while remaining more faithful than ever to our
mission.
The Habitat you see today and will hopefully witness tomorrow will
be different and the purpose of this brochure is to explain how and why.
Todd Heckman
Chairman
“Whatever you did for one of the least brothers of mine, you did for me” (Matt 25:40)

3. Gearing Up For More Change Globally
A remarkable objective when you consider we
have had a presence in Haiti for 26 years
during which time we built only 1,000 homes.
Habitat personnel and resources currently have a
strong presence in northern China and Chile where
earthquakes have made thousands homeless.
Reacting to natural disasters is important, but
fundamentally Habitat has also faced the realization
that shelter, although the key element, is not sufficient to
enable families to overcome the effect of natural disaster or
T en years ago Habitat for Humanity (HFH) was
gaining recognition domestically and had made
serious penetration overseas in our mission to obtain
free them from the shackles of poverty.
Our initiatives are now broader than providing a tent or
affordable housing for the poor. HFH had completed building a simple house. They encompass emergency
100,000 homes and our prospects for steady growth shelters, community planning, infrastructure, training,
were certainly promising. Then a series of events scholastic assistance, sanitation, health programs and
blistered our landscape: Hurricane “Mitch” laid sections of course homebuilding. No, we are not capable of
of Central America to waste, the Tsunami demolished the mounting such all-encompassing efforts by ourselves,
Asian coastline, and Katrina hammered the gulf region. but we are using our brand, size and leverage to form
partnerships with governments and other organizations
Not having a standard operating model that dealt that can bring more resources to bear in areas of need.
with such catastrophes, our initial response was that
we were not an emergency response organization Habitat for Humanity International has made
(such as the Red Cross). Our supporters, the media, necessary course adjustments and at this
government leaders and the general public, not moment we can proudly say we have served
understanding our mission, were expecting more 350,000 families throughout the world and our
from us. The inevitable end result was change. goal is to help 100,000 families annually by 2014.
Habitat did not discard its core mission, but it was
certainly redefined. Every calamity increased Habitat’s
depth of knowledge and sense of purpose. Today we
can candidly say that we have a wider mission and
can be viewed as an organization that can be counted
on in a natural disaster. We have proven this by aiding
23,000 families along the “tsunami” impacted coastline.
Today, Habitat is the largest homebuilder in Louisiana
and Mississippi and has erected 2,000 houses since
Katrina. We have shipped 26,000 emergency shelter
kits into Haiti and we are committed to building shelter
for 50,000 families in Haiti over the next 5 years.
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4. Indian River Habitat for Humanity
External forces have also forced Habitat’s hand locally.
Going back on our relatively short history Indian River Habitat
for Humanity (IRHFH) was initially created to bring awareness
to the large population of sub-standard dwellings that existed in
our community, where more than 800 families live in deplorable
conditions and another estimated 1,430 families live in overcrowded
dwellings.
With only minimal resources we sought to create an example
as to how we could assist poor working people obtain affordable
houses. Gradually we grew from building one house a year, to four
and then up to ten.
As the understanding of Habitat’s mission grew volunteers,
supporters, local government and the community’s expectations of
our organization increased and fortunately so did our resources.
Our growth took us from just being a good example to an
implementing organization. In a relatively short time span we grew
from an all volunteer organization with limited capabilities to one
staffed with employees that could take us to a higher level of house
production.
As the decade progressed we faced obstacles which
impeded our progress. It came first in the form of a construction
boom that put land prices out of reach for Habitat housing. Needing
the economies of scale we concentrated all our resources in the
construction of sub-divisions. Many questioned our experience in
managing developments of such size.
Then back to back hurricanes struck our community making
hundreds of homes in our community uninhabitable. Fortunately
for us, all Habitat built homes endured the elements with very little
impact. But, the number of sub-standard homes in Indian River
County increased. In seeming contradiction as affordable housing
All photos taken in July, 2010 languished, speculative home construction and development
of substandard houses on one persisted.
street in SE Gifford.
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5. Real estate values continued to escalate and in tandem so did
property taxes. The financial impact of the hurricanes was also reflected
in soaring insurance premiums and stricter codes. Surcharges in electrical
rates added to cost of living.
Finally the housing bubble burst and our community was
among the national leaders in the decline of real estate values. With
construction grinding to a halt the market eroded further and eventually
resulted in a recession that took unemployment to 15% in our county. A
flood of foreclosures ensued, a large number resulting from excessive
speculation, but also many due to the recession and unemployment.
Most concerning to us was the effect on our homeowners as they
dealt with lost jobs, cutbacks in work hours, raising children with declining
disposable income and dealing with the responsibility of maintaining a
home. The dramatic increase in gas prices a year ago for many became
the straw that broke the camel’s back.
Choices were being made
daily between paying for food,
transportation or electricity. In
the past we completed a house,
turned over the keys to the new
homeowner and relied on our
warranty to take care of any
problems. In our training classes
we had prepared the homeowners
for a lot of eventualities, but not to
this degree.
Although we could document
many success stories, we still faced an unacceptable number of families who could not meet the challenge of
home ownership. The evidence came in abnormal resignations in the sweat equity phase where prospective
homeowners put in jobsite hours to qualify for a house. But, we saw it also in mortgage delinquencies, deed-in-
lieu’s and in a few cases, foreclosures. We too had to face the reality that our program was in need of revitalization
to meet today’s challenges and ensure that every homeowner became a success story.
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6. Indian River Habitat Today
A s we celebrate our 20th anniversary we can look back and see
that our growing pains have made us a sound organization and
that is evidenced by our receiving “Habitat Affiliate of the Year” three
times in the last five years. But, we know that there are things we can do
better and will need to if we are to meet the expectations of our donors,
volunteers and the community at large.
O ur initiatives today are diverse, yet we do not stray from our
fundamental role of helping to provide decent housing as a means
to fighting poverty. We have established an average running rate of
30 homes a year which compares favorably to the production of larger
Habitat affiliates in Florida that have larger populations. Our activities
continue to provide housing opportunities in every section of the county
to accommodate the needs of homeowners. Depending on the location and economics we build sub-divisions,
small neighborhoods or stand-alone dwellings. Nor are we restricted by stick or block construction, as we will
employ the building methods that result in the most favorable insurance rates and economical maintenance
scenarios for our homeowners.
W ith an average of 30 homes annually we would
make a substantial impact on the low income
housing picture in our community. However, sensing
that grants and contributions by themselves could
not financially sustain our ambitions we speculated
on the construction of a home center, whose
revenue could supplement our financial resources.
Today that business has reached $1,000,000 in
annual sales, employs 12 people and funds the
construction of eight homes annually.
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7. Foreclosures
We have been taking advantage of the availability of foreclosed
homes that can be obtained on favorable terms. This year alone
we purchased, refurbished and sold ten such houses. Some have
needed little work (such as the one pictured on the right), but
others were true rehabs that needed to be completely gutted.
Neighborhood Revitalization Initiative
Some of the housing in our community is for the better part
structurally sound, but needs serious attention. IRHFH has
been selected by Habitat International to participate in the
“Neighborhood Revitalization Initiative,” a pilot program whereby
we will assist 20 additional families this year in re-habilitating their
homes to bring them up to community standard. The families
selected are usually low income homeowners who for the most
part are poor, elderly or disabled. We use donated materials and
different volunteer groups from the community for this effort.
Tithing
Despite our numerous commitments locally we have been
able to fulfill our tithe obligation to support the Habitat mission
in underdeveloped countries. Our donations have helped
build houses in Romania, Dominican Republic, Cote d’Ivoire,
Madagascar, Chile and Haiti. Today we are funneling donations
from non traditional sources in the county to our parent’s Haiti
initiative.
The core of the Habitat program The Habitat Process “sweat equity” in the house.
is to provide a decent affordable Habitat increases the level of
home to a working family. The support to the families until they
process today is defined as are in a position to sustain the
engaging homeowner families ownership of their home. We
that not only qualify, but have a train our staff to be a conduit for
sincere desire to improve their homeowner opportunities, be
situation in life. It’s more than they career, day-today living or
the house! We build houses that scholastic. Our staff manages
are economical to maintain to homeowner associations until
homeowner leadership and
ease their financial burden. We
experience is evident. And,
sell the house with a no-interest
most of all we are pro-active
mortgage to the homeowner who
in providing support whenever
already has invested hours of adversity strikes.
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8. Habitat Home Ownership
The Typical Prospective Homeowner
◊ Most are single parents, primarily women.
◊ They have limited education and work for low
wages.
◊ They have no financial expertise; some have
never written a check.
◊ They are renters; typically their families have
never owned a home.
◊ Budgeting or saving for a rainy day is completely
foreign to virtually all.
◊ Planning for their children’s future is usually
unheard of.
◊ They have no knowledge of basic home
maintenance.
◊ Many do not know how to avail themselves of
all the assistance that is available to them in the
community.
◊ Most feel they have no choice but to let their
children fend for themselves when they are not
in school.
◊ Deep down, they have no hope for a better life for
themselves or their children.
◊ They are hardworking people who have jobs and
are not looking for a handout.
◊ But, as the “working poor” they have a fragile
existence and limitations that impede their
success as homeowners.
Our experience over the years has clearly
demonstrated that we need to accept the
above realities and be prepared to address
them; otherwise, we can anticipate failed
homeowner relationships, foreclosures
and turmoil in our communities.
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9. Homeowner Sustainability - What does it entail?
It means investing in the time and the necessary It sustains that effort with scholarship
resources to train and counsel homeowners until we applications and to some extent with scholarship
reach the point where they are self-sustaining and support.
we can cut the cord. By necessity it means rendering
assistance when unprovoked misfortune occurs. More training in the various aspects of
If they are temporarily struck with adversity, be it homeownership is critical. From financial planning
unemployment, cutbacks in working hours, food, to home maintenance to perils of solicitations by
electric bills, etc. we are prepared to render temporary predatory lenders, they need to be better equipped
assistance to keep them whole and/or direct them to to face the challenges of homeownership.
community resources that can help them.
It also involves the development of their
In the case of unemployment it means getting homeowner associations and providing guidance
involved and providing assistance by posting to these organizations so that the appearance and
job listings, helping with resume preparation and security of their communities can be maintained
interview coaching. It may mean drawing on our and enhanced. This not only helps create a healthy
food pantry which we created last year to meet this environment to raise a family, but has a favorable
crisis. impact on property values for themselves and their
neighbors.
It means providing educational opportunities
for their children in order to break the cycle of Last, but certainly not least, is communicating
generational Habitat homeownership. This can only and giving moral support. Be it providing vital
be accomplished by giving their children a vision of information via the “Homeowners News,” giving job
a better life through education. site support to applicants or being a “Family Support
Partner.” Nothing is more important than knowing
It begins with facilitating and underwriting you have a friend in your corner who wants you to
after-school and summer care. It progresses by succeed.
providing a vision of a college education.
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10. What will we need to do to accomplish our goals?
Implementing a defined program of “Sustainable Current Office Facility
Homeownership” cannot be accomplished without
investing in additional resources. We already have
added a position to coordinate homeowner needs
after they take possession of their home. Beyond
that addition we are adequately staffed at the present
time with a combination of full time employees, part-
timers and AmeriCorps volunteers. The volunteers
that staff our “Family Selection” and “Family Support”
committees are also key players in this initiative.
Our major weakness lies in our facilities which
are no longer adequate for carrying out our mission.
Currently administrative, homeowner assistance and
training are operating in the five trailers located on our
US Hwy 1 property. These refurbished modular units
which we leased six years ago have since survived
three hurricanes, but have served us well. Unfortunately,
despite the efforts of our construction supervisors
they are reaching the end of their life cycle. Their
deficiencies are evidenced in sagging floors, patched
roofs, poor ventilation and insufficient insulation.
Further repairs would not address the issue
of additional space needed for training. Nor would it
improve the poor energy efficiency of these trailers.
To meet the needs of our program for the next decade
and beyond we need to build a dual purpose facility:
An Office and a Training Center. The office part is
self explanatory as it will house the existing staff,
consolidating those employees that are presently housed
in the trailer that is adjoining the four that are interlocked.
The second part is the “Training Center” that is key
to our program for the future. Habitat families are now
given 11 classes to help them become homeowners.
Not so long ago only six classes were given. In hindsight
even 11 is not adequate to prepare these families
for such a big responsibility as being a homeowner.
Handing over the keys, “cutting the cake,”
offering congratulations and fielding phone calls
during the one-year warranty period is far removed Training Class Fall 2009
from the support these families really need.
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11. We have learned that they cannot break We need a facility that maximizes utilization
the cycle of poverty by just getting a house. The by providing meeting rooms during the day and
majority have been brought up in dire circumstances serving as classroom, Home Owner’s Association
and unless their life patterns are altered, that will meeting space and counseling offices in the evening.
continue to be their destiny. And, it is not likely
their offspring will be different. Greater depth Another major consideration is security. In our
of training and support is what is required as present trailers our receptionist cannot restrict access
are accommodations to house such activities. to offices by visitors and their children. Our auxiliary
trailer must be kept locked for safety reasons.
Beyond the needs for an expanded We are ever cognizant of the fact that we only have 10%
classroom schedule, space is needed for of our visiting applicants that qualify for our program
private conferences on job searches, resume and the balance are strangers that we know little about.
writing, computer access, writing wills (a service
which our volunteer attorneys provide) etc. Additionally nearly all our homeowners come
and pay their mortgage at the office. It’s not required,
but it’s their practice which generates a lot of traffic.
The last issue is not having secure record
storage capability, which is of major concern as we
presently manage almost 250 mortgages and that
number increases by approximately 30 every year.
By law we are required to keep sensitive
records on our homeowners in addition to
the hundreds who have applied and been
rejected or resigned for one reason or another.
Top: Receptionist Viola Field with
Home Owner, Bottom: Happy New Current Record Storage in Hallways
Home Buyer
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12. Indian River Habitat for Humanity
Our aim is to build a facility using as much of our human resources as possible and making sure that it can
be accomplished without adversely impacting our construction program. That means using the time and talent of
our supervisors and volunteers to do as much of the work as we can and minimizing the utilization of outside labor
as much as possible. The biggest challenge will be funding for professional services (architects, infrastructure,
HVAC etc.) and for materials which we will purchase from local suppliers.
We are planning a most functional layout that will provide for offices, meeting space and storage in a
secure environment. The adjoining rendering provides a good overview of our intentions in space utilization. We
are fortunate that several years ago our board of directors had the foresight to acquire more land then needed
when they purchased our US Hwy #1 property. So, we are planning to locate this new building immediately to
the east of our present offices. Eventually when the facility is completed the trailers would be returned and the
available space landscaped or possibly turned into a community garden.
What can we do ourselves?
We have already obtained design input from a local architect. Site clearance, engineering and concrete
work would be done with existing suppliers to Habitat. Once the walls are erected our staff and volunteers can do a
great deal to finish off the building. Areas that we do not usually address such as HVAC would again be handled by
current vendors. All contracted work would be done by local labor as is our practice with our home construction.
We feel the present time is appropriate as the organization and its program are stable. IRHFH is current
in all its obligations and our immediate infrastructure costs for development are reserved. We have approximately
370 building lots in our “Land Bank” which can cover our needs for the next 10-12 years. Most importantly, we are
free of long term debt.
We will have some restrictions on scheduling due to the participation of staff and volunteers in the
project while keeping home construction on schedule. However, we feel that occupancy in late 2011 is a realistic
timetable. Obviously the funding for this project will have some bearing on the completion date.
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13. Office and Training Center
Rendered Floor Plan
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14. How will we finance the Office and Training Center?
This project is currently estimated at $1,000,000, which
takes into consideration Habitat labor. We therefore
propose to fund the OTC through five means:
The first is “Deconstruction.” After experimenting
for a year our home center team has formally identified
home deconstruction as an opportunity to generate
revenue. Major renovation and remodeling is taking
place continuously in our community. The opportunity
lies in getting the attention of the homeowner and/or
contractor and volunteering to be involved in the removal
of building components (doors, windows, cabinets, sinks,
commodes etc.). The process translates into less work
for the contractor, fewer dumping fees and a charitable
tax deduction for the homeowner. Habitat then can sell
these items to the public at the home center. We estimate
that this can generate $100,000 in revenue in the first
year.
The second part will be funded through a bequest.
We have been blessed that IRHFH has received an
inheritance of which $250,000 can be earmarked for
the improvement of our facilities. Besides the immediate
benefit that we will realize from this generous donation
from the Cary estate, hopefully it will also serve as an
example to others to remember Habitat in their estate
planning.
Indian River Habitat for Humanity
Our research indicates that we have reasonable Office & Training Center
chance to secure grant money for this purpose and Construction Funding
accordingly have made several applications.
The fourth is the estimated value of our in-house
labor that was described on the previous page.
Finally we must resort to donations, and do so
without adversely impacting our major endeavors. We
realize that raising capital funds at this time is less than
an ideal situation. However we view this project to be
of paramount importance to the success of our mission.
While $250,000 in donations is a substantial amount of
money it represents 25% of the total cost if you quantify
the value of our volunteer labor.
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15. Dear Friends,
We hope that this brochure presented you with a
good perspective of the role Habitat International
plays globally and likewise, provided visibility
into the direction IRHFH has taken to address sub-
standard housing locally. If we have been successful
in the past, it is only as a result of your generous
contributions as donors and volunteers.
Hopefully our past performance merits your continued
confidence in supporting our future initiatives. The
“Office & Training Center” is essential and will make
a major difference in our ability to help build the lives
of those in need.
To complete this project, we are appealing to individuals who have a strong interest in
seeing IRHFH broaden its mission to assist additional families. Naming opportunities
for this project are available for contributors who wish to be remembered or as a
lasting memorial for a loved one. Please contact Peggy Gibbs at 772-562-9860 ext.
209 for a full listing of available opportunities.
Donations of all sizes are welcome and may be made in the form of a pledge,
cash, or a gift of stock. Please make checks payable to “Indian River Habitat for
Humanity OTC.” To arrange a gift of stock or to make a gift using your credit card,
please contact Peggy Gibbs at the number above. IRHFH is a 501(c)(3) non-profit
organization. Your contribution is tax-deductible to the full extent allowed by law.
Should you have further questions regarding this project, please contact me at 772-
562-9860 ext. 208 or ask any member of our Board of Directors or Board Advisors.
Any of us will be more than happy to fully answer your questions.
As always, we value your friendship and know that the success of our mission is in
your hands. Thank you for your thoughtful consideration of this request.
Sincerely yours,
Andrew R. Bowler
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16. Thank You