Habitat for Humanity–MidOhio provides a pathway for prosperity

 
Habitat for Humanity–MidOhio recently expanded to three counties — now serving Licking, Franklin and Madison.
One of the reasons why its brand and standing is so high, according to CEO E.J. Thomas, who has led the MidOhio affiliate for 10 years, is the organization represents a hand up, not a handout.
“That’s a common misconception about Habitat: We give our houses away,” Thomas says. “I answer that question all the time. And of course we don’t. Our families qualify and they have a mortgage at the end of the day. They put in 250 hours of sweat equity.”
At the same time, he says, volunteers, including corporate employees, love working on Habitat’s homes because there’s a tangible product at the end.
Smart Business spoke with Thomas about the organization and its role as an economic generator.

SB: How much does economic development play into where you build and rehab homes?

EJT: In some form or fashion, economic development is part of every home decision we make.
We help lift each family from substandard rental housing to a safe, decent and affordable home that stabilizes their family situation.
In taking each family through financial literacy and homeowner maintenance classes, they become empowered to take control of their finances. More than half of our homeowners find their zero percent mortgage payment is less than what they paid for rent.
Looking through the lens of city administration, by helping bring back neighborhoods in decline, we provide the basis for positive economic activity. When we build on a vacant ‘infill’ lot that has been fallow for years, the home goes on the tax rolls to help support schools and the new family shops in the local area.
And this effect is significantly multiplied when building a number of homes on the same street or in the same neighborhood, as we have done with as many as nine homes on a single cul-de-sac.

SB: Do you measure the impact, or is it more of an eye test?

EJT: The measurement is empirical but not necessarily scientific. I’ll explain by way of example.
Years ago, we were the first homebuilder to construct a new home in the Franklinton area of Columbus in 44 years, according to the mayor. The area had been in a flood plain. By the time the housing moratorium was lifted with the completion of a floodwall, the neighborhood had deteriorated to the point that for-profit builders shied away.
Why? Because they discovered if they spent $140,000 building a home, due to the low “comps” for appraisal purposes the structure was valued at only $120,000.
Enter our Habitat for Humanity affiliate. As a nonprofit builder we were able to build the same home for considerably less, with nearly 3,000 hours of volunteer time.
Following the sale of our sixth home, we noticed for-profit builders re-entering the picture because the area comps that included our new homes brought up the relative value of what they were going to build.
This story is not unique to Columbus. It has occurred in a similar fashion in many cities.

SB: You said Habitat is like any other developer. How is the organization run like a business?

EJT: We have to run our affiliate operation like a business, or we’ll be out of business. Ensuring we get the lowest and best bids from subcontractors and working to generate working capital for any given fiscal year are important elements to keeping the budget balanced and our financial picture healthy.
Of significant help is our source of sustainable income — Habitat MidOhio ReStores. These two retail locations accept donations of home goods and construction materials from large box stores, contractors and individual DIY homeowners. We, in turn, sell the goods to the general public.
During fiscal year 2014, our ReStores generated over $1.7 million in sales — and the net was sufficient to offset nearly all our administrative expenses.
With this supplemental income, I’m able to tell folks their donation — in whatever amount — will be used to get a new family into a home. It won’t be sidetracked into paying for lights, heat, rent and salaries for staff.

SB: What are other recent accomplishments?

EJT: We’re averaging 16 to 22 housing solutions each year with new builds and rehabs. We are ramping up our Critical Home Repair program, with a focus on veterans, where we help with the external maintenance of their properties.
With our two ReStores, we have the highest grossing retail operations in Ohio, and are in the top 15 for ReStores nationwide out of more than 800 stores.
All that said — the greatest significance is what we’re able to do for Habitat partner families. In the past three years we’ve impacted 64 families by building new homes, rehabbing others and providing critical home repairs, some of which allowed seniors to age gracefully in their homes.

Watching the transformation from applicant to homeowner is heartwarming. It provides a pathway to prosperity.