family selection 101 - habitat for humanity of...
TRANSCRIPT
Family Selection 101
David Moore, Supervisor
Affiliate Support Center
1. Understand
– Steps of the Selection Process
– Basics Selection Criteria
2. Have a list of Documents you’ll need for Family Selection
3. Have a plan to make a plan
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Goals for Today
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If every family we serve is perfect we are definitely doing something wrong… Millard Fuller
Recruitment
Application
Verifications
Denial or
Approval
Letter of Acceptance
Sweat Equity
Re-Verification
Dedication
Closing
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Application meeting may happen here
Know the law for denial letters
Is the family still eligible?
Time to get excited!!
Transition from Selection to Support
Family Partner Life Cycle
Wearing Two Hats
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Habitat Program Hat
Legal Lender Hat
Affiliate Covenant Foundational Principle
Habitat for Humanity Affiliates build, renovate, and repair decent
and affordable housing with people who are living in inadequate
housing and who are unable to secure adequate housing by
conventional means.
Wearing Two Hats
Application Musts
• Use HFHI applications
• Required Documentation
• Consistent calculation of income and debt
• Consistent standards of acceptance including credit history
• Notifications – timeline & content
DEFINE and DOCUMENT
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Application Process
• Set up the applicant file
• Safe & Confidential Storage
• Retention – 25 months from date of
completion
• Application Review starts when ALL
documents are in • Notice of Incomplete Application
• Notice must be sent within 30 days
• Specify information needed
• Specify when it must be submitted
• Notice of Acceptance or Denial
• within 30 days of completed Application
Know the Law
Selection Decisions CANNOT Be Based On:
• Race • Color • Religion • Sex • Familial Status • National Origin • Handicap • Marital Status • Public Assistance
Recipients
Family Selection Basics
• Income Limits
• Residency Policy
• The 3 HFHI Selection Criteria
• De-Selection Criteria & Process
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Family Selection Manual and Criteria template available on
my.habitat.org by searching “family selection AOM”
http://my.habitat.org/kc/download-detail/g323b9/March-2010---Family-
Selection-Affiliate-Operations-Manual-AOM
• Will you accept families who currently live outside the GSA?
– If so under what conditions?
• US Residency Status Considerations
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Residency Considerations
DEFINE and DOCUMENT
Family Selection Criteria
Need
Ability to Pay
Willingness to Partner
Determining Need
• Safety
• Health & Wellness
• Overcrowding
• Cannot get conventional financing
• Cost of housing / affordability
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DEFINE and DOCUMENT
Willingness to Partner
DEFINE and DOCUMENT
Sum of the entire family’s interactions
with the affiliate
• Keep a record of all interactions
• Sweat Equity Policy
• Milestones met?
• Frequency of Communication?
• Notification of changes?
• Lot/home Turndown Policy
Determining Ability to Pay
Income
Credit History
Long Term Debt
DEFINE and DOCUMENT
The best indicator of future behavior is past behavior
Income Limits
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Family
Size
Median
Income
Minimum
Annual @
30%
Maximum
Annual @
60%
Minimum
Mthly
Gross
Income
Maximum
Mthly
Gross
Income
1 $45,000 $13,500 $27,000 $1,786 $2,250
2 $50,000 $15,000 $30,000 $1,786 $2,500
3 $55,000 $16,500 $33,000 $1,786 $2,750
4 $60,000 $18,000 $36,000 $1,786 $3,000
5 $65,000 $19,500 $39,000 $1,786 $3,250
6 $70,000 $21,000 $42,000 $1,786 $3,500
7 $80,000 $24,000 $48,000 $2,000 $4,000
8 $85,000 $25,500 $51,000 $2,125 $4,250
• Who’s income do you consider?
• How will you determine income?
Calculating Income
What Income is considered? All Money legally received on a regular schedule by ALL household members from ALL sources.
Salary Alimony
Retirement Child Support
Pension Public Assistance
Social Security Self Employed Income
Guideline to Remember
Only count income that will continue for at least 3 years
DEFINE and DOCUMENT
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Verifying Income
• Recent pay stubs
• Checks or payments from pensions, SSI, child support, alimony, or public assistance
• Verification of Assistance from a case worker
• Copies of recent income tax forms
• Requests Verification of Income from Employer (FHA forms)
Determining Risk
• Income/Employment History
• Credit Score
• Bankruptcy
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DEFINE and DOCUMENT
• Past Due accounts • Collection Accounts • Charge offs • Evictions
Determining Debt
• Short Term Debt
• Long Term Debt
• Past Due Accounts
• Collection Accounts
• Charge Offs
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DEFINE and DOCUMENT
House Expense Ratio
Housing Expense Principal
Taxes
Insurance
Utilities (except phone)
Association Assessments
Total
Monthly Annual
$250 $ 3,000
$100 $ 1,200
$ 50 $ 600
$200 $ 2,400
$ 50 $ 600
$650 $ 7,800
Income $2,307 $30,000
Housing Expense Ratio 28% (divide housing expense by income)
HUD Standard <=28%
Each Affiliate should establish its own income guidelines and ratios
Window of Service
Up to 60% of
Median Income
Steady Income
>=5 years
Residency
>=2yrs
Credit Score
>=500
Past Due
Balances
<$1,000
Collection
Accounts
$0.00
Bankruptcy
>5 yrs ago
Acceptance Letter- Expectations
• Partner family – Sweat equity
– Homeowner Education
– Credit items to resolve
– Down payment
– De-Selection Criteria
• Affiliate – house size
– # of bedrooms
– # of lot /home rejections
– work days
From Selection to Support
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From Selection to Support
Mentor/Advocate Assignments • Positive for the family & the volunteer
• Train your mentor/advocates well
Homeowner Education • How many hours?
• Who does them?
• When are how are they documented?
Remember: Support doesn’t stop at closing, the relationship just changes!
• Number of Hours
• What counts
• How many can be donated
• Who can donate them
• Timeline for Completion
• Tracking System
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DEFINE and DOCUMENT
Sweat Equity Policy
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De-Selection
Have a policy BEFORE you need it
Be consistent in applying the policy
4 Reasons families can be deselected
• Negative change in income • Fraud on the application • Failure to fulfill expectations as outlined in Acceptance Letter • Presence on Sexual Offender database or Criminal
Background; as defined by your affiliate policy
You can (and must) also deselect if you get a hit on an AML/CFPB check
• Recheck Credit
• Receive Down Payment
• Assure there is homeowners insurance
• Calculate escrow
Before Closing
What is already in Place?
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• Family Selection Criteria
• Acceptance Letter
• Education Plan
• Sweat Equity Plan
• Family Mentor Program
• De-selection Criteria
• Mortgage Services Plan
• Application Process
• Tracking & Record Retention
• Mortgage Payment Calculations
• Selection Criteria
• Sweat Equity Requirements
• Education Requirements
• Acceptance Letter
• De-selection Criteria
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Start from the Beginning
Resources
• Family Selection Manual • Family Support Manual • My.Habitat.org
• Samples • Forums • Webinars • Recorded Training calls • SSO Conferences and Learning Events
• Networking – find a mentor • Affiliate Support Center • Field Staff • Neighboring Affiliates
Affiliate Support Center Monday-Friday 8:00am- 8:00pm EST
877-434-4435
10/23/2013
QUESTIONS??