Selection Criteria for HFHI - Nevada Area Affiliate

The first priority for Habitat for Humanity is to provide adequate housing for individuals who have lived, worked or worshipped in the community of Nevada, for a period of one year. The applicant household must understand that an investigation will be conducted by the Selection Committee to determine housing needs, ability to pay, and a willingness to partner. The application process will include personal visits and interviews by the
committee members.

Following is a detailed breakdown of the three major areas of selection criteria:

Need
Actual housing need as determined by the condition of current shelter. Examples include:
    Inadequate current shelter because of problems with the heating, water supply, electricity, bathroom(s), kitchen,
    unsafe structure, inaccessibility for disabled family members, etc...
Overcrowded living conditions as determined by:
        a. Number of persons in household.
        b. Ages of household members.
        c. Gender of household members.
Cost of current housing exceeds 40% of family income.
Current neighborhood is unsafe or unsuitable for children or other family members.
Inability to meet need for decent housing through other means. Examples include:
        a. Total family income falls below 50% of median income of applicant’s area.
        b. Inability to secure a conventional market loan.

Ability to Pay
Family income is not threatened by home ownership, i.e., source of income would not stop or decrease if family
owns a home.
Debt to income ratio - family’s debt payment should not prohibit them from meeting normal cost of living expenses.
    As a standard measure, a family’s debt payments each month (excluding projected house payments should not
    exceed 5% to 10% of monthly income.
Applicant has demonstrated an ability to make regular monthly payments for rent, utilities and other
credit obligations.
Ability to pay 1% of the cost of the Habitat House as a down payment.

Willingness to Partner
Participation in Habitat’s "Homeownership Education Program," which includes classes in personal finance,
home maintenance and Habitat for Humanity history and philosophy.
Disclosure of financial and personal information, including employment, personal references,
proof of income and current personal indebtedness, supported by payment stubs and records, etc..
Follow through on Habitat program application requirements including home visit and interview.
Fulfillment of "sweat equity" requirements which are 400 total hours; of which 200 are to be on own home,
whether new or renovated.
Maintenance and repairs of house after occupancy.
Timely house payments each month.
 
Sweat Equity
Guidelines defining "sweat equity" for the Nevada MO Area Habitat for Humanity.
    a. Sweat equity will consist of the number of actual hours spent by the family and friends.
    b. Four hundred hours of work will be required; at least 200 of those hours must be on their own home.
    The other 200 hours may be on other Habitat projects. If possible the family should work 100 hours before
    construction of their home begins, one hundred of the required 400 hours may be contributed by family
    and friends of the family.
    c. Type of work allowed for sweat equity: construction, painting, clean-up, fixing meals for workers or any
    other activities approved by the family support committee.
    d. Two hundred-fifty (250) of the 400 hours of sweat equity must be completed before closure on the house
    can take place, if no other project is in progress, 200 competed hours o sweat equity will be sufficient.
    e. Sweat equity hours will be monitored by individual specified by Nevada MO Area Habitat for Humanity
    and will be kept in a logbook.

These guidelines are subject to change only with the approval of the
Nevada MO Area Habitat for Humanity Board of Directors.

This information is provided as reference only.