Submitted by Suanne Z. Thamm
Reporter – News Analyst
October 3, 2019
You may think you know all about Habitat for Humanity. But unless you are one of their local volunteers or homeowners, you probably know much less than you thought. The organization’s principal officer, Alvaro Pertuz. provided Fernandina Beach City Commissioners (FBCC) and all who watched the FBCC’s October 1, 2019 Regular Meeting with an in-depth look at our local affordable housing crisis and how Nassau Habitat for Humanity is working to help alleviate it.
Backed up by a 7-slide presentation, Pertuz explained the accomplishments of Habitat since their incorporation in 1994. Habitat’s mission is to provide safe, affordable homes for lower income working families. The organization is a registered 501(c)(3) non-profit with a local board of directors. They receive no government funding. They built their first home in 1995, and last month began work on their 44th home.
Habitat relies on the work of their volunteers, potential homeowners, and businesses to construct the houses. Homeowners are required to invest “sweat equity:” 300 hours of labor in building their house. Donations come from individuals, churches and businesses. The houses are sold at cost: $80-85 per square foot. The location is determined by where land has been donated or land the organization can afford to purchase.
The need for workforce housing has long been a topic of discussion for the City of Fernandina Beach and Nassau County. Many people equate workforce housing with low income housing, one of the biggest misconceptions. In fact, entry level police, teachers, nurses aides, clerical workers and others cannot afford conventional home purchases because they cannot qualify for mortgages. People who make 60 percent of the Fernandina Beach Median Income— or $36,000 — are considered candidates for affordable housing.
Applicants for Habitat for Humanity homes go through a rigorous vetting process. Habitat holds the mortgage on the homes they build. Mortgage restrictions prevent homeowners from taking profit from the sale of their homes. Homeowners pay property taxes based on market value and pay for homeowners insurance. Since mortgage payments may not exceed 30 percent of their monthly income, homeowners generally pay $520 per month for a 2 bedroom home or $600 per month for a 3 bedroom home. There is a zero percent interest rate.
Pertuz identified the key elements of success of Nassau Habitat for Humanity. Among those he cited the volunteer labor, below market rate financing structure, and the vetted/involved homeowners. He also said that the people who obtain the homes are employed in the local community. The market value of the homes built considerably exceeds the cost to build, resulting in tax revenues for the City and the County.
For more information about Nassau Habitat for Humanity and how you can donate to their work or apply for one of their houses, visit their website: https://www.nassauhabitatforhumanity.org.
Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.
Thank you Suanne for highlighting this wonderful organization. I have been proud to have worked on a number of HFH in Nassau County and Atlanta area. To talk to the incoming homeowner and see them investing their sweat equity makes you feel good about your contribution to this major change in their life.