Founded in 1990, Habitat for Humanity Southern Alberta (HFHSA) is the affiliate of Habitat for Humanity Canada that runs the Habitat Homeownership program in Southern Alberta. It provides affordable housing to low-income families in eight local communities: Airdrie, Brooks, Calgary, Drumheller, Foothills, Medicine Hat, Mountain View, and Pincher Creek. HFHSA states that over 4,000 people in Calgary are on waitlists for social housing, and 11% of households in Alberta are in a core housing need.

Habitat for Humanity Southern Alberta spent $5.6 million on its Homeownership program directly in F2019. To be eligible for a Habitat home, families must meet certain financial and employment requirements, have children under 18, and contribute 500 hours of ‘sweat equity’ into building Habitat homes. Partner families buy Habitat homes at market value, with no down payment and an interest-free mortgage capped at 25% of total household income. Mortgage payments enter a revolving Fund for Humanity that is used to build more homes in the community. 39 new families bought Habitat homes in F2019. This is up 8% year-over-year from 36 new families in F2018. Homes built by HFHSA typically have three bedrooms, 1.5 bathrooms, and cost $265,000 to build. The charity partners with local businesses and volunteers to build these homes.

In F2016, HFHSA planned to build a duplex in Drumheller to help two families purchase starter homes through the affordable Homeownership program. It was gifted a piece of land for this project. By mid-2018, the economics of renting vs purchasing a home for families in the community changed and the project was cancelled. HFHSA donated the land to the municipal Drumheller government and funds raised for construction have been returned or re-allocated to other projects.

Habitat for Humanity Southern Alberta spent $2.3m on buybacks in F2019. Buybacks take place when partner families have built up equity and are ready to move out of their Habitat home. HFHSA repurchases the home from the family, and the family can use this equity to buy a house on the market. The remaining $1.3m of program spending in F2019 was on support costs – family services and volunteers.

Habitat for Humanity Southern Alberta also operates ReStores that sell new and lightly used building materials and home products at 40% - 60% off retail prices. These materials are donated from the public. HFHSA operates two Restores in Calgary and one in Medicine Hat. HFHSA reports that ReStores diverted 2,650 tons of waste in F2019.

Habitat for Humanity Southern Alberta is a medium-sized charity that received $2.7m in cash donations in F2019. Goods in kind of $198k represent donated materials to be used in building Habitat homes. Administrative costs are 18% of revenues (excluding investment income) and fundraising costs are 24% of cash donations (excluding donations from Habitat for Humanity Canada). Per dollar donated to the charity, 58 cents go to the cause. This is not within Ci’s reasonable range for overhead spending. When donated build materials are included, the fundraising ratio drops to 19%*.

HFHSA’s F2019 funding reserves are negative $2.8m owing to $4.8m in loans and lines of credit. Excluding these debts, the charity’s reserves can cover annual program costs at current levels for less than three months.

This report is an update that has been sent to Habitat for Humanity Southern Alberta for review. Comments and edits may be forthcoming.

Updated on June 22, 2020 by Katie Khodawandi.

*Ci did not include donated build materials in its standard fundraising cost ratio calculation because it could not accurately determine what proportion of materials came from Habitat for Humanity Canada.