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

10/23/2013

Goals for Today

10/23/2013

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

10/23/2013

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

10/23/2013

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

ussupportcenter@habitat.org

10/23/2013

QUESTIONS??