After touring the home she and her family were presented Friday, Lorie Lozada said: “We have two beds and TVs but we need sofas and a dining table, things like that. But that’s OK, little by little we’ll get what we need. The house is the important thing.”
EUSTIS – Around this time last year, James Santiago, his wife Lorie Lozada and their now 8-year-old son Jianluc Santiago were pondering a move from Puerto Rico to Florida after losing their home and possessions to Hurricane Maria. They had no idea where they would be living or what was in store for them.
On Friday morning however, they received keys to their very own home in Eustis, built just for them by Habitat for Humanity and other organizations, including the Ohlsson Charitable Trust, the Women Builders and the Lake County Sheriff’s Office, who all came together for the cause.
“We are emotional and so excited,” Lozada said. “We just feel so incredibly lucky,”
The family had first been living in a hotel, and then in a nearby apartment.
“It’s a beautiful house and I feel so happy and grateful,” Santiago said.
Friends and family of the recipients, volunteers and members of all the participating organizations were invited to a “Welcome Home” dedication ceremony in front of the 3-bedroom, 2-bath home on Friday morning.
Habitat’s CEO Kent Adcock said for him, helping the family was especially meaningful because his own parents were victims to the wrath of Hurricane Katrina in 2005, and lost their home because of it.
“I know what they are feeling; what they are going through,” Adcock said at the dedication.
Through the building process, the house served to help many others along the way.
Lake Tech’s Laurie Bryant of the Women Builder’s “Hammer Knocker” team, said she was able to learn about what goes into building a home from scratch and found it very fulfilling.
Bryant and her team members on Friday, presented the family with a bible and a tool kit after they were presented with a flag by Ron Grove of the Sons of the American Revolution.
“I am honored that we were able to help build this house,” Bryant said.
November is a time to honor our Veterans and those who have sacrificed so much in service to our country. As part of our Veteran’s Housing Initiative, we serve veterans through our Home Ownership program and through Preservation and Repair. Here, you’ll get a chance to meet veteran, Eddie Broglin and learn what’s next for our Veterans in Lake and Sumter Counties.
Born and raised in Florida, Eddie Broglin is a true Florida Native. When speaking to Eddie about his home state, you can barely mention a new place before Eddie tells you his connection to that area; Lake Wales, Bartow, Lake City, Fort Pierce, it becomes apparent very quickly that Florida holds a special place in Eddie’s heart.
After graduating high school, Eddie Broglin was faced with the challenge of what he was going to do next. A fellow classmate told him that he was going to join the National Guard and convinced Eddie to sign up as well. Stationed at Wauchula, Florida where he worked with gunners and as a mess cook, Eddie then moved to the Naples Armory where he went on to serve an eight year career. While Eddie learned a lot from being in the service, he unfortunately suffered a heat stroke that would have a lasting impact on him the rest of his life. After his military career, Eddie moved around the state, and left feeling un-grounded while staying with friends or renting, he decided it was time to find a home of his own.
Eddie describes his experience of working with multiple real estate agents and exhausting his resources through Veterans Affairs, his search for a home appeared hopeless. “I was looking for a studio apartment, but mortgages and rent have flopped. Now it’s cheaper to pay a mortgage than to pay rent,” says Eddie. Eddie describes an experience that is relatable to many and sits at the very heart of Habitat for Humanity Lake-Sumter’s mission.
Eddie decided a “tiny home” would provide the best solution to affording a home of his own and started to search out of state, believing he would have to move from Florida in order to find affordable housing.
Finally, Eddie met real estate agent, Maureen Campbell. Maureen knew about Eddie’s desire to stay in Florida and his interest in “tiny homes.” With these two requests in mind, Maureen suggested Eddie look into Habitat for Humanity as a resource and facilitated the process for Eddie to apply to be a homeowner with Habitat Lake-Sumter. A cottage-style home currently being built in Coleman, Florida was THE home Eddie had been searching for.
While discussing his newly built home, it’s evident how grateful Eddie is to be able to be a part of the Habitat Lake-Sumter’s home ownership program; a home he believes is built with love by the staff and volunteers who have put “their heart in to it.”
“The first thing I did was plant my red maple tree,” a tree Eddie bought when he first learned of being accepted into Habitat for Humanity Lake-Sumter’s home ownership program, “to symbolize being rooted here,” says Eddie. In this quiet community in Coleman, FL, balanced by rural and growth; Eddie has found a place to plant his roots a little deeper into Florida.
If you’d like to know more about the work we’ve done with Veterans this year, come visit Habitat for Humanity Lake-Sumter’s booth at the Villagers for Veterans Film Festival on Wednesday, November 6th.
To support upcoming Veterans projects throughout Lake and Sumter, donate today!
“We looked out the window and watched our walls tumbling down our stairs,” says Lorie Lozada.
Lozada, originally from New York, watched in horror with her family as their house was torn apart in front of their eyes as Hurricane Maria, a category 5 storm, ravaged Puerto Rico in the fall of 2017.
“After my father passed away in ‘96, my mom moved back Puerto Rico to be closer to family” says Lozada. “When my mother had a heart attack three years later, my daughter Alexandra and I moved to Puerto Rico to take care of her.”
That’s where Lozada says she met her husband James. “By the time my mother passed away, I’d met James and we had a son, Jianluc.” So, rather than move back to New York when her mother passed, Lozado’s family built a life in Puerto Rico. There they lived in a second story wooden addition, built above her mother-in-law’s concrete home.
“When the storm hit, we thought we were prepared,” says Lozada. “We had canned goods, gas, water, enough supplies for 8 or 9 days.” But the storm was much worse than they could have imagined. “I’m from New York, I’d never seen anything like this, it was horrifying,” said Lozada who says she can remember the terrible noises coming from above as they hunkered down in her mother-in-law’s home.
Peering out during the storm, Lozada recalls seeing her refrigerator falling to the ground just outside of the window. “The wind picked the fridge back up, ripped it in two, and sent the doors flying in one direction and the rest flying in the other.” When the storm finally past, Lozada says their home was destroyed and, because her mother-in-law’s home sustained damage as well, they could not rebuild the second story addition. “One of the walls of our home was blown onto our car. We lost everything except for a few mementos and some clothing we had time to grab.”
“FEMA assessed the damage and our situation and offered us some help, including airfare to the United States.” As a territory of the U.S., citizens of Puerto Rico also have American Citizenship by birth so coming to the U.S., where both Lozada and her husband have family, was an option but it wasn’t an easy decision.
The couple’s son had grown close to Lozada’s daughter Alexandra, and her husband’s son Kevin, both of which chose to stay in Puerto Rico, making their decision to leave even harder.
“We sat down and prayed and prayed as a family,” says Lozada. “We’re big on our faith and we put everything in God’s hands.”
Rather than going back to her home state of New York, they chose to relocate to Florida where her husband has cousins and extended family. Lozada says the transition wasn’t easy but she’s incredibly grateful for all the organizations that have lent them a hand in their time of need, including Habitat for Humanity of Lake-Sumter.
“After living in a hotel for a while, we eventually settled into an apartment in Eustis,” says Lozada. While they were looking for housing, one of James’ cousins encouraged the family to apply for help through Habitat. “Once we were contacted by Habitat, we still weren’t certain we be able to make it work. We really had to work with a lot of agencies to tie it all together.” The Small Business Association, FEMA and help from Habitat Lake-Sumter all played a role in helping Lozada and her family qualify for a home through one of Habitat’s programs.
“It’s a pale green bungalow with orange shutters,” says Lozada. “When you see it in person, the colors work beautifully together.” And she’s seen the property often, living within walking distance now, Lozada passes by her future home on a daily basis and says it should be ready any day now.
Lacie Himes, Development Coordinator for Habitat for Humanity of Lake-Sumter, says construction on Lozada’s home began last spring and was made possible through the fundraising and volunteer hours of the organization’s Women Build program. Himes says the Inmate Construction Academy also played a significant role in completing the house, bringing together two of Habitat’s most successful programs to build a new home for Lozada and her family.
Two years ago, Lozada and her family were preparing for Hurricane Maria. This fall, they’re looking forward to a different kind of chaos.
“We’re hoping to be in our new home before Thanksgiving,” said Lozada who plans to start their own traditions, bringing together influences from both Puerto Rico and the United States. “We’re planning to share the holidays with lots of friends and family, bless the house with everyone in it and have a big, crazy Thanksgiving!”
By David Larrick
You’re invited to meet the Lozada’s and celebrate with them as we dedicate their home on Friday, November 22nd – Contact Shari for details and to RSVP: Shari@HabitatLS.org or (352) 483-0434 x 118
Three newly built cottage-style homes in Coleman, including this one at 6702 Winkles St., will be dedicated Saturday by Habitat of Lake-Sumter before the keys are turned over to the new homeowners: Eddie Broglin, Kaylei and David Tranor, and Gennivieve Sprague.
“These are the first cottage-model homes we have ever built and dedicated; the first type of small trial homes,” says Danielle Stroud, director of development, for Habitat for Humanity of Lake-Sumter, Florida.
She says the 2 bedroom/1 bath homes of about 700 square feet each were designed for smaller families entering the housing market or those seeking to downsize.
“There is a huge interest and need for more smaller, entry-level homes,” Danielle says. “And when you think about the trends in housing, bigger homes have gone by the wayside. A lot of folks cannot buy that big for their first-time home.”
Danielle says the three cottages in Coleman are half the size of the cottage-style houses Habitat built in Veterans Village in Umatilla.
Saturday’s dedication will feature a gathering of volunteers, sponsors, the homeowners’ loved-ones, along with local dignitaries, including Congressman Daniel Webster, a strong supporter of Habitat for Humanity of Lake-Sumter. The congressman also spent time volunteering to build one of the houses being dedicated.
Jasmine Jacobs held tightly to her 6-year-old daughter’s hand as they walked up to their new home together. Awaiting their arrival were some of the people who helped her become a first-time homeowner, including 11 seniors from the construction management academy at The Villages High School. The young builders stood proudly outside the brand-new home on Winners Circle in Lady Lake as it glistened in the sunlight Friday morning.—Rachel Stuart, The Villages Daily Sun
As the first graduating class, the success of the partnership between the Villages Charter School and Habitat for Humanity of Lake-Sumter was evident in the smiling faces of the new homeowner, students, teachers, and sponsors alike.
As the Youth Construction Academy expands to include Leesburg High School and over 70 new students; the success and growth of the Youth Construction Academy is due in no small part to United Way of Lake-Sumter. United Way has chosen Habitat for Humanity of Lake-Sumter to receive an education grant in support of the Youth Construction Academy.
The Villages Charter High School students worked alongside industry professionals, instructors, and Habitat Construction Manager, Barry Martin, to build the house as part of their capstone project; construction began in August with the students building as their first period class.
“They were able to hone their construction skills and get a realistic feel for the business,” said Bruce Haberle, instructor of the construction management academy. “It’s a team-building experience where they were able to give back to those who are less fortunate.”
United Way’s mission is to “advance the common good by focusing on education, income and health,” Habitat of Lake-Sumter and United Way share in the belief that these three things are the “building blocks for a good life—a quality education that leads to a stable job, enough income to support a family through retirement, and good health.”
Thanks to United Way of Lake-Sumter and their ongoing partnership with Habitat’s Youth Construction Academy, the graduating class will be the first of many students to gain experience, acquire employable skills, and engage in the social responsibility and community impact that shapes professional and personal development.
“It’s been amazing, and they’ve done a great job,” said Danielle Stroud, Senior Director of Development for Habitat for Humanity of Lake-Sumter. “We really hope they learned something along the way, which is the purpose of this partnership.”
Check out some photos from the dedication on our Facebook Page!
Jasmine Jacobs held tightly to her 6-year-old daughter’s hand as they walked up to their new home together. Awaiting their arrival were some of the people who helped her become a first-time homeowner, including 11 seniors from the construction management academy at The Villages High School. The young builders stood proudly outside the brand-new home on Winners Circle in Lady Lake as it glistened in the sunlight Friday morning. For the first time, Habitat for Humanity of Lake-Sumter partnered with The Villages Charter School to build the house. Construction started in August, with the students working several days a week until it was completed.
“They were able to hone their construction skills and get a realistic feel for the business,” said Bruce Haberle, instructor of the construction management academy. “It’s a team-building experience where they were able to give back to those who are less fortunate.”
Habitat for Humanity, a housing organization that works with communities across the nation, chooses its recipients through a first-come, first-qualified process.
Jacobs, a retail store manager, learned she had been selected after going through several steps for approval.
“I was overwhelmed,” she said. “I was like, ‘Is this really happening?’ But now that we’re at the tail end of it, I’m just so excited.”
The families chosen by Habitat for Humanity are required to contribute 200 hours of sweat equity, which means they take part in the building process.
Jacobs helped by greeting and thanking volunteers and donors, and she also took financial-education courses, credit counseling and first-time homebuyer courses.
“I got to help do the outside, and I did some caulking, painting and flooring,” she said. “I had no idea what I was doing, but the kids from school were very nice and helped me out.”
She said she enjoyed working with the students because they brought some lively energy to the site.
“They were loud and funny, making jokes and blasting music,” she said. “They made it fun.”
This is the first home students have built through the academy, which launched last school year.
“It’s been amazing, and they’ve done a great job,” said Danielle Stroud, director of development for Habitat for Humanity of Lake-Sumter. “We really hope they learned something along the way, which is the purpose of this partnership.”
If you are familiar with Habitat for Humanity you’re likely familiar with the term “Sweat Equity.” A simple phrase with a big meaning. Sweat equity is often used to describe the value someone adds to a project through the hard work they contribute to making it a success. For example, Habitat home owners contribute sweat equity by volunteering on a worksite, in the office, or through educational courses.
For Anita Brooks, the term “sweat equity” may have been new but the concept was far from foreign to her. Ms. Brooks, as her students call her, is a third-grade teacher who earned her teaching degree while working for the school district. “I worked as a receptionist for 12 years,” said Anita. “And I put myself through school so I could become a teacher.”
It was a colleague of Anita’s at the school that first turned her on to the idea of partnering with Habitat for Humanity to build a home. Anita and her family had always been renters but had a unique opportunity to build on land deeded to her by her mother. The two-and-half acre parcel was just minutes from their current home, in rural Oxford and the location played a part in the home Anita and her family chose to build.
“They gave us a few options in terms of models we could pick from,” said Anita. “Being in the country, I knew I wanted a porch.” Her daughter, 15-year-old Lailah suggested they go a four-bedroom model so Anita could use one of the rooms as an office. Anita agreed noting that she often brings work home with her no matter how much time she spends at school.
As her house begins to take shape, Anita says she stops by every day after school to see what has been accomplished and hopes that someone is still there working so she can express her gratitude. “I just want to thank everyone who has had a hand in building my home,” said Anita. Those working on her home often seem surprised by her gesture, but Anita feels it’s only right to express gratitude to those helping her accomplish something she couldn’t do on her own.
As a family that rented but never owned a home of their own, Anita says that her daughter is excited to finally have a room that she can do something with. “She likes to watch where her room is going to be. She’s enjoying the thought of picking out colors and making it her own,” said Anita.
The family plans to close on their home this summer and Anita says they’ll likely have a house warming party just to have family over. “I don’t need anything else, no more toasters or anything,” she said laughingly. “But we’re very family-orientated and this will be a great place to celebrate each other and the things we accomplish.”
Anita also wants her daughter and her older son Brandell, who’s 21 and no longer lives at home, to know that they finally have a home to come back to.
As for sweat equity in her new home, Anita says she’s ready to invest in the house she plans to make a home for her and her children. “I’ve been saving up my vacation days,” she says with enthusiasm. “I’m looking forward to helping out and getting my hands dirty!”
By David Larrick
In our last article we compared various hourly wages and what they could afford for rental housing based on the 2018 Fair Market Rent (FMR) per month. We learned that it took $18/hour, or $37,440 per year, for a person to afford the 2018 FMR of $840 for a one bedroom home.
But what if you wanted to buy a home? On the traditional market, many of these same wages may face extreme difficulties in obtaining their own home and staying within the envelope of affordability. That’s where affordable housing builders step in – organizations like Habitat for Humanity of Lake-Sumter or Homes In Partnership exist to partner with families who are edged out of the traditional market. These organizations offer opportunities to partner, allowing the financial entry point to homeownership to become more obtainable.
Let’s take a moment to look at a real life scenario – let’s meet Janice and Rose. We’ve used her budget and income to compare her rental reality in a 2BR Fair Market rental prior to her obtaining a 2BR home built in partnership with Habitat for Humanity of Lake-Sumter. Like all of the families who qualify for the Habitat program and are approved for their loan, Janice was able to get into a home with zero down payment, no closing costs, and a monthly mortgage that includes taxes and insurance that they can afford. Now she and her daughter have a safe and secure place to call home.
$12/hour: Annual Gross Income $24,960: Monthly Gross Income $2,080
Janice moved from paying 48% of her gross income for her two bedroom rental (with a negative cash flow of $376) to owning her own home, paying just 23% for housing, with a positive cash flow each month. While these numbers are still based on gross take home, we can see the meaningful shift toward a more realistic budget.
What’s the impact on her health? Her outlook for a future? Her ability to withstand an unexpected expense?
Affordable housing is affordable not because it’s of lower quality or built to sub-standard codes. It’s affordable because of the generosity of donors and volunteers who invest in the future of these families. Habitat for Humanity of Lake-Sumter works to build an affordable product, but also works to raise capital through relationships in the community in order to subsidize the homes for these families so they can be sold at a price that is affordable.
Habitat for Humanity of Lake-Sumter firmly believes in providing a pathway out of poverty. According to The U.S. Department of Housing and Urban Development studies have shown that “homeowners accumulate wealth as the investment in their homes grow, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime.” Because of the stability and financial flexibility that an affordable home offers, higher graduation rates for children of homeowners is 19 percent higher than for renters, and they are twice as likely to acquire some post-secondary education, according to a study in a journal published by the Federal Reserve Bank of New York.
As with many of our families we are looking forward to seeing Janice and her daughter Rose prosper – you never know who Rose will grow up to be, but we are happy to have had a part in providing her the opportunity to thrive.
By Lee Owen
C is for Clarifying the Calculation, Part II: Reality Check
In our last article we looked at the AMI, Area Median Income, and learned that the AMI for Lake County is $62,900 ($30.24/hour based on 40 hours/week, 52 paid weeks/year). Pop quiz: what does ‘median’ mean? It’s not the average; it means that half make more, half make less.
Median income drives the entire conversation on affordable housing. Pop quiz: What does the term ‘affordable housing’ mean? It means that no more than 30% of gross household income is spent on rent/utilities or, in the case of home ownership, PITI (principle, interest, taxes, and insurance). Why? Because everyone needs room in their budget to pay for other expenses.
Using the chart below, we see that someone earning the median income for Lake County would be able to afford the Fair Market Rent (FMR) for housing. What about those earning less than the median? Let’s walk through those numbers. The chart is based on the following details:
- Florida’s 2019 minimum wage is $8.46
- The Fair Market Rent (FMR) is from the National Low Income Housing Coalition’s (NLIHC) annual Out of Reach data for housing costs in zip code 32757 (at the site, click on the zip code for detailed information)
- The 1 BR and 2 BR columns show the difference between the affordable, 30% housing number (what you’d ideally pay) and the actual Fair Market Rent
- Income is pre-tax, based on 52 paid weeks/year at 40 hours/week, no overtime
How does paying more than 30% affect the rest of someone’s finances? Let’s look at three theoretical budgets for a single person renting a one bedroom home. We’re using percentage allocations commonly recommended by professional planners. Are you ready to see what those earning less than the median income are dealing with?
Any conversation about affordable housing must begin with AMI, Area Median Income. In this article we’ll explore this term in more detail to make sure we’re all on the same page. In Part II, we’ll look at a sample budget to illustrate the impact of housing expense on various income levels. Ready to dive in?
By ‘Area,’ we mean the MSA, or Metropolitan Statistical Area. The MSA is quite useful. It captures all manner of data for a given geography so anyone—employer, government agency, job candidate, hospital, etc.—can compare apples and apples. (Or, since this is Florida, oranges to oranges.) For example, economic development groups, transportation analyses, labor market studies, and of course, the housing industry will all be working from the same information to write policy, design long-term plans, public works projects, and so on.
Here’s a great definition of the MSA from Investopedia.com: “Metropolitan statistical areas usually consist of a core city with a large population and its surrounding region, which may include several adjacent counties. The area defined by the MSA is typically marked by significant social and economic interaction. People living in outlying rural areas, for example, may commute considerable distances to work, shop, or attend social activities in the urban center.
There are almost 400 metropolitan statistical areas in the United States. In contrast to micropolitan statistical areas, which center on towns and smaller communities with populations below 10,000, metropolitan statistical areas must include a city with a population of at least 50,000.”
Our local Habitat for Humanity affiliate is covered by two MSA’s: Lake County is part of the Orlando-Kissimmee-Sanford MSA, while Sumter County is in The Villages’ MSA. The MSA data drives the income calculations for any affordable housing program.
‘Median’ isn’t the same thing as ‘average.’ Here’s how the Census Bureau defines it: “Median income is the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount.” So, for your area (MSA) of interest, imagine lining up every household, from poorest to richest. The household in the exact middle would represent the median for that MSA—half make less, half make more.
In the very simple example below, the total household income for the area is $394,850. With just 7 homes, that means the average income is $56,407. However, the median, or the point at which half make more, half make less, is $62,900.
|One home at each income||Total Income|
And how is an area’s income figured out to begin with? It starts with the Census Bureau; each year they contact “over 3.5 million households
across the country to participate in the American Community Survey. When you respond to the survey, you are doing your part to ensure decisions about your community can be made using the best data available.” (Learn more about the ACS here). The ACS includes income data.
Once that data is available, HUD gets to work. They use the data to calculate the median income for each geographic area based on how strong the data is. If it’s deemed statistically reliable, they can run with that for the year; if it’s not statistically reliable, for whatever reason, they’ll work on a combination of surveys and formulas…and it gets complicated. To see the process in detail for Lake County, Florida, check out their calculation process here.
From this process, HUD announces the AMI for a given area. That number will then be used for different types of affordable housing programs (rentals and purchases) across the country. Our Habitat affiliate generally uses the USDA’s mortgage program for eligible home owners, so we use their AMI charts. The chart below is what Habitat would look at. (This data is extrapolated from the USDA’s site for 2018.) Remember, the median means half the residents earn less, half earn more.
If you’re fact-checking the calculations, you’ll see they don’t match up exactly. For example, using Lake County’s AMI, you’d do this: $62,900 x .50 = $31,450, whereas the USDA lists $31,950. These slight variations are likely due to USDA including non-wage sources of income in the household, such as child support, SSI, or alimony. The income numbers represent the maximum allowable to qualify for each category. Therefore, a Lake County household of 2 with an income of $31,900 would qualify for Very Low Income programs; however, if the income were $32,000, they’d be in the range for Low Income programs.
|Lake County||Number in the household|
|50% AMI (Very Low Income)||$ 31,950||$ 42,200|
|80% AMI (Low Income)||$ 51,100||$ 67,450|
|Sumter County||Number in the household|
|50% AMI (Very Low)||$ 33,400||$ 44,100|
|80% AMI (Low)||$ 53,450||$ 70,550|
Many myths abound regarding what ‘affordable’ means for housing and who qualifies for such programs. It’s no exaggeration to say that every legitimate program that strives to help people keep their housing cost affordable (paying no more than 30% of their income for housing) is using the same foundation: the AMI.
In our next installment, we’ll put a few sample budgets to the test. We’ll take various monthly incomes at different hourly wage rates, and we’ll allocate the money to expenses using generally-accepted financial advisor recommendations. In doing so, we’ll see what percent of the typical income goes to housing versus the recommended 30% figure. And we’ll be able to answer the question: at what income is housing affordable for Lake and Sumter Counties?
Your turn: How does your income, or that of your employees, compare to the AMI for Lake or Sumter counties? How do you think this affects the amount of money left, after housing is paid, to cover all other living expenses? –> Respond to us on facebook with your thoughts to continue the conversation
Article By: Lee Owen, Habitat Volunteer