Outside the Box

Applicant Recruitment

Ideas

Portland, OR

Oct. 24, 25, 2014

Participants will:

Review the work of HFHI on the subject

Share best practices

Gain experience through Q and A

Group Activity

Share the family selection roadblocks that

your affiliate is experiencing today.

Mortgage Procedures and Regulations

MPARAll homeowner selection staff and committee

members review MPAR University on

my.habitat.

Download the mortgage origination

checklist

All selection staff and committee members

take the ABA courses offered. slee@habitat.org

June 2008© Copyright 2008

Recruit Internally

Ask your homeowners for suggestions.

Ask homeowners how the process went

for them?

Homeowner satisfaction survey

Homeowner focus groups

Consider making changes in the selection

process based on feedback.

Spread the Word within the affiliate

Board of Directors

Short 10 minute presentation

statistics on # of families applied, #

chosen

roadblocks to successful application

roadblocks to families applying

Present a list of how they can help

suggestion for outreach

make presentations

suggest coalition partners, etc.

Who else can help?

Utilize Your ReStore

Mission posted – big and easy to read

ReStore staff know the brief criteria

Resource Center

Information about the affiliate

Information about applying

Computer for applying

Columbus Area Habitat for Humanity

ReSource Center

@ ReStore Computer Stations

Internet

HFH materials

Lending Library

Reading Lounge

Kid-Friendly Activities

8

www.columbusareahabitat.com

Outside the Affiliate--Shared Marketing

IdeasMarket throughout your GSA

• Fliers in utility bills

• E-mail blasts to other non-profits

• schools

• posters

• want ads

• Facebook

• Craigslist

• Business cards for family selection

• Educate other non-profits / banks so they can refer

Outside Information Sessions –Wake Co.

June 2008© Copyright 2008

In Raleigh area Wake Co. HFH, these

include large hospitals, school district office

& city public transit

Outside of Raleigh, approach largest

employers and local churches

HFH of Greater Memphis

FY 14 Recruitment Objectives

• Develop a strategic recruitment campaign,

including paid ad placement.

• Earn at least 3 news stories annually.

• Secure a minimum of 200 visits per month to the

online application page.

• Reach 1,200 potential applicants annually (100

per month)

• Host 4 offsite orientation sessions annually.

• Launch quarterly homeowner newsletter

HFH of Greater MemphisElements of the Plan

Paid Advertising – TV, Radio, Inside Busses

Social Media

Other Habitat Channels - Newsletter, E-Mail

Blasts, ReStore, Website, Blog, etc.

Grassroots Outreach

More Offsite Orientations

More Aggressive Follow-Up Process

Direct Mail

Public Relations

HFH of Greater Memphis

Paid Advertisement

• TV – Goal is to place via Comcast on targeted channels

(BET, CMT, Lifetime, etc.) and a local network, like FOX

or ABC. Later, a placement on a Spanish-language station

may be considered.

• Radio/TV Memphis Habitat purchased spots from Kent

County, MI, affiliate and re-edited for Memphis use. The

sound will be used for radio spots. There is also a Spanish

version.

• Online – Facebook promoted posts and perhaps Google

AdWords

• Signage inside local busses

Houston County HFH, GA

Message for media and local employers.

Tom Prior: “Employers know who their dependable,

low-wage employees are, ones that have been with

them for a while. They can essentially give them a

$300-a-month pay raise by pointing them to Habitat,

and it won’t cost them a cent. When employers help

do that, their employee’s housing cost can easily

drop by $300 a month.”

Wake County HFH, NC

-

Wake Co. still looking to do better

June 2008© Copyright 2008

Inducing large employers to allow significant

information distribution to staff

Biggest personal goal….to convince Wal-Mart

to allow presentations to associates

Analyze your current process.

Open Application Cycle

vs

Closed Application Cycle

Application Distribution

Applicant Meeting vs Sending Applications

Review applicant meeting data:

Attendance, completed applications, number approved

What are families saying:

Location, Length, Presentation, Child Care

Former process:

Brief criteria for program on phone.

Take contact info.

Send postcard with meeting time and place.

Volunteers available to help with application.

Indian River Example: Evaluating Process

Personal Touch vs Applicant Meeting

“Individualizing our Family Selection process remains to

be one of the most successful changes we have made

over the last 5 years.” Lindsey Goodall, Indian River HFH

New Process:

Brief criteria for program on phone, invite to office

Staff meets with all applicants that come to office.

Orientation video in office.

Every applicant gets a 3-step plan

Indian River New Process

Each 3 step plan is personalized for the applicant.

For one that qualifies, it might be:

Complete application

Make copies of documentation

Turn in application

For someone who doesn’t qualify, it may look more like:

Pay down bad debt to meet our guidelines

Reduce debt to income by paying off a credit card or increasing

income by filing for child support.

Start collecting paperwork needed by Habitat when you’re

ready to qualify.

Indian River HFH 3-Step Plan

Greater San Francisco Homebuyer Readiness

2010 began an outreach and learning program

designed to educate and inspire potential applicants.

We conduct a three-session seminar on credit, debt

and budgeting;

We include a free credit report and 1:1 counseling

session;

We picked five cities/neighborhoods to focus efforts;

and

We visit each city twice a year and use a local CBO

facility.

21

Collaborate with Other OrganizationsMitchell-Yancey, HFH, NC, Example

Applicants with credit problems referred to a

volunteer at a credit union

Volunteer works with the family

Charlotte County HFH, FL, Example

Use a pre-application

All applicants put into timed pipeline:

• 6 months (meet criteria), 18 months (small

problem), Beyond (referred to Solstice for credit

counseling)

• Regular check-in with affiliate required

Other Partnerships Ideas

Housing Authority

Bank homebuyer programs

IDA programs at churches

Broaden Your Family Selection Criteria

Need

Need varies from family to family. Can changes be

made to serve a wider audience?

Overcrowding

Unhealthy housing situations—mold, mildew

Factors beyond obvious structural inadequacies such

as the family being cost-burdened.

• Households paying more than 30% of income to

housing costs (including utilities) are said to be

“cost burdened.” Households paying more than

50% of income for housing are said to be “severely

cost burdened

Avoid Creeping Affluence

Check your costs:

Are houses still affordable?

Use an ability-to-pay calculator to help the

Family Selection Committee determine

affordability.

Has the Cost of Your Houses Eliminated

Applicants?

Payment shall not exceed 30% of gross monthly income.YEARLY HOUSING EXPENSES

Sales Price _____

Years Amortized _____ total number of monthly payments _____

MONTHLY MORTGAGE PAYMENT _____Taxes _____

Insurance _____

Other _____

MONTHLY ESCROW PAYMENT _____

PROJECTED MONTHLY UTILITY _____

TOTAL MONTHLY EXPENSES _____

TOTAL YEARLY EXPENSES _____

MINIMUM GROSS INCOME REQUIRED (Family of 4—

AMI 35,000)At 30% At 33%

At 38% At 40%

Payment shall not exceed 30% of gross monthly income.YEARLY HOUSING EXPENSES

Sales Price 100,000

Years Amortized 30 total number of monthly payments 360

MONTHLY MORTGAGE PAYMENT 278Taxes 80

Insurance 50

Other (termite bond) 10

MONTHLY ESCROW PAYMENT 140

PROJECTED MONTHLY UTILITY 100

TOTAL MONTHLY EXPENSES 518

TOTAL YEARLY EXPENSES 6,126

MINIMUM GROSS INCOME REQUIRED (Family of 4—

AMI 35,000)At 30% 10,500 At 33% 11,550

At 38% 13,300 At 40% 14,000

What is wrong with this scenario?

Are We Counting All Income?

Family Income is all the money that is legally

received on a regular schedule by all family

members from all sources (salary, retirement,

pension, Social Security, disability, child

support, alimony, public assistance, etc.).

Sources of income that will continue for at least

three years.

Does your affiliate have a policy?

Use a time limit

Classify different debt differently

Are there extenuating circumstances to consider?

No credit vs long history. (Some cultures do not

believe in credit.)

Consider current situation and actions

– repaying and improving?

–willing to consider counseling?

--attitude?

What is Good Credit and Bad Credit for

Your Affiliate?

June 2008© Copyright 2008

The Fair Credit Reporting Act was amended by

the Dodd-Frank Wall Street Reform and

Consumer Protection Act and, effective July 21,

2011, creditors must include the disclosure of

credit scores and related information if a credit

score was used in taking adverse action (such

as the denial of a homeowner’s application by

an affiliate). My.habitat sample letter available

soon.http://my.habitat.org/download/g32e58/HFHI-Legal-Advisory--Denial-for-

Credit-Reasons-under-Fair-Credit-Reporting-Act-Oct-2011

New Credit Rule

Evaluate Willingness to Partner

Assess willingness to partner criteria:

• Completion and return of the application in a

timely fashion still appropriate.

• Review the affiliate’s sweat equity requirements.

• Do you need accommodations for saving a

down payment or closing costs?

Other Resourcesmy.habitat.org

Recipes for Financial Fitness

http://www.habitat.org/habitat_learns/nefe/index.html

Clearpoint (online courses)

National Endowment for Financial Education

(NEFE.org)

Conf. calls on my.habitat http://my.habitat.org/audiorecordings/g34624/Finding-

Creditworthy-Applicants-during-the-Recession-61-minutes-

2009

http://my.habitat.org/audiorecordings/g353b2/Determining-

Family-Ability-to-Pay-2011-73-minutes

October, 2011

Thank you for your important role

in this ministry!