When Loudoun Habitat for Humanity team members set out to launch several affordable housing projects, they couldn't fathom anyone opposing such a noble effort.
They were wrong.
In January 2009, the organization started planning four projects involving 21 properties in Loudoun County. The plan was to purchase, build and redevelop them for low-income families in need of decent affordable housing.
First, the team had to secure the financial resources—and the US$3 million housing fund managed by the county seemed like a natural fit. So the group submitted a request for US$876,000, 25 percent of the total cost of its four projects.
The team members were confident the project would get the money—and with good reason, says Alta Jones, president of the board of directors at Loudoun Habitat for Humanity.
After all, the local county government had obtained funds specifically designated to develop housing for low- and moderate-income families. Federal stimulus funding was also earmarked for projects like the ones the group was proposing. And Habitat for Humanity happened to be the only group in the area building homes for the low-income population.
There could be little doubt of the need. The median annual income in Loudoun County is US$107,000, and it ranks number one in the nation for 24- to 34-year-olds earning more than US$100,000 per year. That left even moderate-income families with few housing options.
“It was a project with merit and we brought additional money from the community, which no other applicant could do,” Ms. Jones says.
With private donations and federal funds, Habitat could cover 75 percent of each project's cost.
Still, the team had to prove it had the construction, project management and financial expertise to
When Worlds Collide
The corporate world might want to pick up a few tips from the not-for-profit world.
“There are a lot of parallels in what we went through for these projects and what you need to win support for corporate projects, especially in today's economy,” says Alta Jones, Loudoun Habitat for Humanity, Sterling, Virginia, USA. “When there are cutbacks, you have to get your project in front of the capital allocation group to make your case. To do that you need to have a champion on your side who understands the merits of your project and who will speak on your behalf.”
By relentlessly pursuing support and making her case to any board member who would listen, Ms. Jones found those champions and was able to communicate the benefits of what her organization was hoping to achieve.
“You can't sit back and wait—you have to be willing to drop everything to get in front of the decision-makers to make your projects happen,” she says. “Then you've got to be concise and deliver the same clear message every time.”
There's also something to be said for sticking to your message: “Persistence is the key.”
“It was a long, drawn-out process,” Ms. Jones says.
Even a not-for-profit organization such as Habitat for Humanity doesn't catch any special breaks.
“We have to manage our timelines and make our business case just like for-profit companies,” she says.
Fortunately, her team included several veteran project managers, along with real estate developers, contractors and financial specialists. “We are lucky to have so many experienced professionals on our team,” says Ms. Jones, who leverages her own background in financial services.
Armed with all that experience as well as other sources of financing and resources, the team members forged ahead with the project.
They thought it would be a done deal “due to the merit of our project and the market we serve,” she admits.
It turned out to be a bit more complicated.
A DIFFERENCE OF OPINION
In May, the Loudoun Habitat for Humanity president and project manager were invited to speak to the county's Housing Trust Committee, which would decide the financial fate of the project. Ms. Jones and the Habitat team spent two hours making their case, explaining how the effort could create housing for more than 100 people.
That's when their sure-fire plan encountered a major glitch.
The team learned that at least one committee member preferred to invest in high-density rentals rather than affordable single-family homes.
And just like that, the project that had looked like a no-brainer was on the verge of failure—before it had even launched. The housing committee ceased all communication, and despite frequent calls, there was no movement in getting the application approved.
The team needed the go-ahead to apply for federal stimulus money—and those deadlines were approaching fast.
“It was getting late and we needed to do something,” Ms. Jones says. Instead of sitting around and hoping for the best, she rallied her team. “We developed a strategy to unclog the log jam.”
Habitat steering committee members called, wrote letters and used whatever connections they had to reach out and explain the urgency of the project and the timeline.
“The result was not good,” Ms. Jones admits.
Within 10 days, the housing committee denied the application.
FROM THE CLUTCHES OF DEFEAT
That would have been the not-so-happy ending for many projects, but not in this case.
Ms. Jones knew the housing committee would have to go before the County Board of Supervisors to officially confirm the application denial—and that's where she spotted her window of opportunity.
The Habitat steering committee outlined the merits of its projects. But Ms. Jones also went in armed with another powerful incentive, pointing out that if the application was denied, the county could lose its stimulus money for affordable housing.
“The current political environment in the county does not support high-density, subsidized rental properties, therefore zoning for this type of property would be a long process and probably would be rejected,” she says. “The U.S. and global financial debacle has also negatively impacted the value of the low-income tax credits needed to make this type of project viable.”
Habitat was the only entity in the county with access to federal stimulus money.
The team made its case.
Again the group waited for a response, and again, it didn't hear anything.
With the clock ticking, Ms. Jones' team had to scramble to launch yet another campaign, this time directed at the County Board of Supervisors.
“Our steering committee set a goal to get in front of each of the nine supervisors before the final vote,” she says.
Team members managed to speak with three supervisors and then hand-delivered letters to the others. Two days later, they were convinced they had three of the nine votes, but the rest were up in the air.
“It was a nail-biter,” Ms. Jones says. She knew the odds were stacked against her team because the board would have to actually overturn the housing committee's decision. Despite the odds, she held out hope.
〉Wall-raising of a house in Loudoun County
And the board came through, at least partially.
Habitat was awarded
US$500,000
to purchase and rehab six of 13 foreclosed
properties and complete a five-unit subdivision of newly constructed homes.
On 4 November, it approved the two largest of the four projects in a five-to-three vote, with one absentee. Habitat was awarded US$500,000 to purchase and rehab six of 13 foreclosed properties and complete a five-unit subdivision of newly constructed homes. The decision came just in time for the organization to leverage federal stimulus funds to purchase its first foreclosed property.
Persistence—and a strong reputation— paid off.
“Habitat has a tremendous track record in Loudoun County of building homes for low-income families,” says Jim Burton, who was one of the five supervisors to approve the grant. “Their application met every one of our criteria and they have a reputation for producing results. I felt their projects would be a valuable contribution to the community.”
The Habitat team has already sold a newly constructed home to a partner family and is actively looking for another foreclosed property to purchase—not bad for a bunch of projects that seemed doomed to fail. —Sarah Fister Gale