Ministry vs. Fiscal Responsibility
By Joe Gatlin

Twenty-five years into its mission of building simple, decent houses, Habitat for Humanity is just beginning to celebrate mortgage payoffs with Habitat homeowners worldwide. This issue of Habitat World focuses on a few of those homeowners. Each has faced hard times, each has fulfilled a commitment to partner despite the obstacles, and by persevering, each has contributed to the legacy of eliminating poverty housing, one family at a time.



Habitat for Humanity affiliates walk a fine line between ministry and accountability when it comes to the issue of mortgage repayments.

On one side is founder and president Millard Fuller’s challenging dictum: “If you’ve got 10 homeowner families and you have no payment problems, you’ve selected the wrong 10 families.” In other words, affiliates may not be taking enough risks.

His words are undergirded by Jesus’ messages of forgiveness: “Give to those who ask from you;” and “Forgive us our debts as we forgive our debtors.” Through mercy, relationships are redeemed and new life is born.

Yet on the other side of the line is a legitimate need to responsibly run a business, handle money, administer mortgages and bring reality to the concept of “homeownership.” Affiliates are called to be faithful stewards of the “Fund for Humanity” so a healthy revolving fund will continue to finance the construction of more houses.

There are guiding principles that help affiliates keep their balance within this ministry.

• Affiliates do take risks in family selection. The guidelines for homeowner selection are designed to serve low-income people who are earning 25–50 percent of the area median income. By that very definition, affiliates are likely serving families and individuals who may have problems meeting their obligations.
• Most affiliates obtain credit reports, not to eliminate applicants who have had trouble paying bills, but to help design success. Families may be referred to credit counseling to get assistance with developing budgets and managing their finances.
• Habitat affiliates often teach classes and workshops that help prepare prospective homeowners for their new challenges.
• The “sweat-equity” program also greatly increases the odds for success and is one more way in which the Habitat model provides a “hand up, not a handout.”
• A clearly articulated and consistently administered delinquency program helps encourage consistent homeowner payments.
• When there are problems in mortgage repayments, Habitat affiliates have the flexibility to seek creative solutions—something that is not usually possible for financial institutions.

Admittedly, there are times when a Habitat affiliate must choose to pursue foreclosure. By that point, the affiliate will have gone the extra mile or two or three. To continue on in that direction would be to abandon the responsibility of this ministry. The theological tightrope is obvious: How can a Christian ministry opt “for closing” the relationship with the homeowner, rather than “for giving” one more chance?

The work of Habitat for Humanity sets the stage for a new relationship. God’s grace breaks down the dividing wall created by the economic system of a world that makes affordable housing impossible for many.

Any relationship, even a relationship with God, requires that both parties choose to relate. When an affiliate has done all within its power to help make the relationship work, and still the relationship disintegrates with the nonpayment of the mortgage, it has to accept that the partnership just hasn’t worked.

Still, there is hope. Nothing prevents a Habitat homeowner who has experienced foreclosure from reapplying again at a later date for a Habitat house. In the fullness of time, all of God’s children should have a simple, decent place to live.


Joe Gatlin is regional director of Habitat for Humanity International’s Middle States region.


Reprinted from Habitat World Magazine, April/May 2001.
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©2001 Habitat for Humanity International