Funding the Recovery Effort: Operation Home Delivery

Habitat for Humanity International’s financial strategy

Funding a recovery program of this magnitude is extremely challenging. The expenses involve more than just the raw cost of a home. Expenses will include land acquisition and development, as well as professional services and program support. Through the end of March, 241,945 individual donations had been recorded totaling $81,826,192. In addition to those funds, another $11,362,503 in projected commitments from various sources had been reported, bringing total commitments (documented and projected) to $96,849,896.

While this is certainly a good start, it pales in comparison to the funds needed to build significant numbers of homes. With the average cost of family sponsorship coming in at just over $75,000, even $200 million would not begin to build enough homes to meet the urgent need that exists along the Gulf Coast for the long term. Habitat for Humanity will continue to seek funding from private, corporate and government sources as long as the need in the hurricane-affected areas exists.

It is particularly important during times of disaster that Habitat uses funds wisely and holds itself to the highest accounting standards.

With nearly $97 million pledged and donated thus far, Habitat has begun to disburse the funds to affiliates to get them back on their feet, build their capacity and get them building homes again.

Among the 20 hardest hit affiliates along the Gulf Coast, Habitat has distributed $3.2 million in emergency operational and capacity grants. In addition $1.9 million has been distributed in construction grants, and $3.1 million in land acquisition and development grants bringing the total to $8.2 million in affiliate support as of the end of March 2006. An additional $8.6 million is in the process of being approved. There are currently 194 homes under construction.

The Operation Home Delivery management office has set forth internal strategies to ensure the most efficient and effective use of the funds with which it has been entrusted.

Operation Home Delivery pledges to:

• Maintain minimal overhead, operational expenses and house unit cost to maximize the assistance to hurricane-affected families.
• Implement accelerated asset recovery program to leverage assets and maximize dollars available for building houses.
• Ensure proper security, tracking and recording of cash, gifts in kind, and other Operation Home Delivery/Habitat for Humanity International assets.
• Provide timely and accurate financial management reporting.
• Engage Habitat for Humanity International internal audit for review of policies, procedures and controls.
• Deploy financial review teams to ensure good stewardship of donors’ gifts.
• Establish an open and free exchange of financial information between Habitat for Humanity International and affiliates to fully capture the needs and progress of the project.
• Monitor all contracts and ensure compliance of terms and conditions of each contract.