Habitat braces for economic impact on its homeowners
November 1, 2008
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Neil Hetherington
SPECIAL TO THE STAR
What will happen to our most vulnerable in this time of economic uncertainty? Can we expect the number of people who call the street their home in Toronto to increase? What will it mean to those organizations that are committed to ending poverty housing?
Habitat for Humanity Toronto is planning for 2009 and we're worried. We're not just preparing Plan A and Plan B, but we're also preparing Plan C.
We are living in uncertain times and some of the uncertainties we face concern our three primary sources of income: donations, ReStore revenue, and mortgage repayments from our current homeowners.
We are greatly concerned about year-end donations to the organization, as are other charities that take care of the city's disadvantaged. Individuals may reconsider gifts of stock – a usual hedge against capital gains taxes – when falling share prices mean there may be no profits to protect from the taxman. Will corporate giving make up for those donations? That is an uncertainty. And this uncertainty could mean a delay in a new home start, which means a family will be waiting in substandard housing for an opportunity to move up.
All of Habitat's administrative costs are paid for from the profits of the city's three ReStores, which sell salvaged, used and donated building materials. With a downturn in the economy, perhaps there will be an increase in demand for the used building materials we sell. However, will homeowners put renovations on hold, thereby drying up the supply of great products donated to our ReStores?
Finally, and most importantly, is the homeowners themselves. Habitat for Humanity Toronto has a great partnership with our families – all of whom are up-to-date on their mortgage payments. But these are also families who toil at the lower end of the pay scale, which means they could be the first to lose their jobs in bad economic times, putting their homes at risk.
If donations and corporate sponsorships decline, Habitat for Humanity Toronto will need to review its build plans. Will there be the donations needed to buy the concrete, wood and windows? If not, for the first time in the organization's history we will need to delay a development because of funding, and deliver difficult news to the families on our waiting list.
Can there be any good news in this? Perhaps land will become more available and more affordable. Perhaps there will be more individuals looking to hone their volunteer construction skills while they are between employment positions. But these are unknowns.
What is known is that Habitat for Humanity will be more committed to the growing number of families in need.
Neil Hetherington is the Chief Executive Officer of Habitat for Humanity Toronto. For more information, go to torontohabitat.ca or call 416-755-7353.
Toronto Star