Habitat for Humanity Builds 100 Homes a Year in Collier County

Habitat for Humanity in Collier County is arguably the best organization of its kind in the United States, building 100 homes a year, year-in, year-out, regardless of the economy.

CEO Lisa Lefkow and board president Mike Mueller are currently working on a 125-unit project, Whitaker Woods, off of Rattlesnake Hammock Road in East Naples. The development looks like a somewhat upscale Naples neighborhood and not a typecast affordable living development.

“Everything that we build is the best thing that we’ve done,” Lefkow says with her big smile. "The last thing we built was Vincent’s Acres. A beautiful neighborhood, it really is extraordinary. Two-story, single-family homes." 

Around the country, Habitat for Humanity builds homes that are often one-offs and could be characterized as cookie cutter types. But not so much in Collier County.

“Habitat around the country,” Mueller said, "many do not have the volume of resources or people to do a whole neighborhood. They’ll do single lots, here and there. And we’ll do that on occasion. But the vast majority of our work, both in Immokalee and here, the last 21 years, has been big neighborhoods.”

Habitat for Humanity in Collier County has become experts in community building.

“We have 11 active homeowner associations,” Lefkow said proudly, "11 full subdivisions that have been completed and turned over to an HOA board. Then we’ve got two that we’re actively working on now - Whitaker Woods and Esperanza. We’ll have another two to add to that inventory shortly.”

One of the challenges of such large-scale building in these days of COVID is parts availability.

“We’re stockpiling parts right now because of the supply chain issues,” Lefkow said. “We’re ordering everything we need for 125 homes and just storing it inside houses.”

Of course, one of the major challenges for Habitat for Humanity is land acquisition. That is the one area where they experience great competition.

“We’re always looking for land,” Lefkow said. "At this point it is at such a premium. We’re vying with all of the for-profit builders. When we find a piece where the numbers work, and it makes sense, and the location is good, we’re going to move forward with that."

Lefkow and Mueller do their homework and make sure they don’t put their organization in an untenable situation.

“It’s a balancing act,” Mueller said," but most of the property we buy, we check out ahead of time. We try to make sure we’ve got land that the zoning has already been established. That way we have a good chance of getting it permitted properly. Occasionally we’ll get something that is really far out at a really reasonable price and fight the zoning and fight the permitting. But you have to be careful doing that. Because you can hold something forever waiting for the zoning to occur. Zoning is so important around here. Because there is so much land that is already tied up. Either Everglades or the refuge - whatever. It will never be built on. That only increases the competition for what can be built on.”

Lefkow concurs. “About 80 percent of the land in Collier County is under some kind of overlay,” Lefkow said, "either local, state or federal restrictions on development. A great example is the Everglades. Can’t ever be built on. Much of it lies within the Collier County geography. It means that of the land that is available, the 20 percent that can be developed is really at a premium.”

Lefkow said the Whitaker Woods development is an example of the pushback Habitat sometimes has to deal with.

"A great example of that pushback is this piece of land,” Lefkow said as she looks out over the beautiful buildings at Whitaker Woods, in various states of construction.

“When we purchased originally,” Lefkow said, "it had six units by acre zoning by right. It was already zoned - almost shovel-ready. But we had a bigger vision for this property. An opportunity to build it as a mixed community. Using some single-family homes, some multi-family. But it would require us to get some zoning variances.”

“We went ahead with a petition to get those zoning variances,” Lefkow said. "But the neighbors around honestly didn’t understand. And because it was Habitat, they said ‘No, no, no, no.’ I think they were probably hoping that that meant we would go away. Not fully understanding what the six units per acre meant. That it would either be an apartment complex or something like we built.”

Habitat’s plan actually called for lower density than was permitted.

"What we’re building today,” Lefkow said, "is just over five units per acre, so we gave up some of that density. We just thought we were coming up with a better design, including green space, the playground, the rain garden. That’s also critically important to us. The balancing act of getting as many units as we can, but also designing a really great product and a really great neighborhood.”

Mueller is justifiably proud of the product Habitat for Humanity is producing in Collier County. He said people are noticing.

“We get a lot of people driving by and seeing a middle-class builder and wanting to come in and try to buy our product,” Mueller said. "When we were building a simple duplex, that didn’t happen hardly at all. Now, at Dockside, at Vincent Acres and here, you get a lot of people who say, ‘Did you see those condos or townhomes or single-family homes? I wonder what they’re selling for.’ Well, we’re not selling them to the general public. We’re selling them to our clients who are the low-income wage earners.”

“People will ask,” Lefkow laughs, 'Where’s the sales model?’”

Some people erroneously think that Habitat for Humanity is a handout. 

 “It’s not a handout,” Lefkow clarifies. "It’s a hand up.”

"They dedicate themselves with hours,” Mueller explains, "down payment, and then paying their monthly mortgage off - which is interest free. Even in today’s world, with low interest rates, an interest free mortgage makes a big difference.”

The typical Habitat for Humanity family is hard-working. Rarely does a couple only hold down two jobs between them.

“What we see is either a single parent that is working two or two-and-a-half jobs,” Lefkow said, "or we may have two wage earners who work three jobs between them. We see that quite often. With their Habitat home they can reduce those hours and have time to spend with kids, investing in academic support - all those things that really build a better outcome for the kids.”

Habitat for Humanity in Collier County has a success rate that would make any mortgage firm envious.

“A pretty high rate of success,” Lefkow says with pride. "We’ve sold about 2,365 houses in our 43-year history in Collier County. We still have an active portfolio of just under 1,800 mortgages. So, some of those families have paid off their mortgages. Our earliest families all had 20-year terms. Today terms are tailored to the individual, based on affordability. So, if your income is a little bit lower, we’ll simply stretch out the length of the loan to bring down the payments. That’s one of our methods of providing affordability. So, everyone’s terms are individually tailored. At 1,800 active mortgages, we have a default rate of less than one percent, and a delinquency rate of 4.6 percent."

“We joke that it’s probably better than the millionaires,” Mueller laughs.

“Even during the recession, we were far lower,” Lefkow said. "We never hit double digit delinquencies. It’s a testimony to the families who purchase Habitat homes and make it through our qualifying. It’s a pretty rigorous process that includes sweat equity, they have to take a whole series of classes, they have to spend 25 hours of one-on-one with an advisor, reviewing their financial standing, figuring out their budgeting. Giving them a perspective on future budgeting when they’re in their Habitat home. Everybody could benefit from that.”

“What really amazes me is how well disciplined so many of these people are when they come to us as far as saving for the future,” Mueller said. "Some of them make $40,000 and have saved $20,000 or more. I mean these are people who get it. They really want to make things better for their families moving forward. And it’s demonstrated in spades on how they’ve taken care of their families to date."

"During the recession,” Lefkow said, “That was one of those periods that we moved away from subdivisions and went back to scattered lots. During the recession we bought hundreds of homes - 300 homes - out of foreclosure. Renovated or tore them down and rebuilt. There were critical savings in that method because we didn’t have to pay any impact fees, because all of the impact fees had been paid already. That’s a big nut. When you walk in and you’re talking about 20 grand before you even pull a permit, it pushes affordability to its limit.”

So how does Habitat for Humanity work?

“Our organization,” Mueller said, "about a third of our resources are donations. About a third are from our loans that are being paid back to us, and then we get some grants and other things, and we get other in-kind donations. It’s really a community involvement. It’s a model that works. We really get people who are in need, but at the same time they are people who benefit our community. This is really such a rich community in many ways. But when you have everybody from a policeman, down to a school teacher, to someone who works in the service industry, people who work at Walmart, or wherever in the retail industry, they can’t afford to buy a house. They can’t even afford to rent anymore. 

"So, when we get 1,700 applications a year for 100 houses, it shows you how much the need is. If our community could find more ways to increase not only our donations, but our government grants and things like that, we could do more. And there is a need. You see some of the dilapidated homes these people are currently living in because rent is so high and they can’t afford it. They’re living in garages and broken-down trailers. It breaks your heart.

"What we say is, 'Let’s all work together and find a way to solve this problem.' Because it’s not going away. As you can see, we’re entering a new era of inflation. It’s only going to get worse. The cost of everything is going up. We solicit everybody’s help. You can look around, you can see the results of what we do. You’re really helping your neighbors."

“I think one of the most interesting and compelling parts of the Habitat model is that perpetual recycling of funds,” Lefkow said. "It’s unique. Mike makes a donation; we use it to buy lumber. We’re not giving anything away. The qualified family is buying the house at just under fair market value and returning that original gift that Mike made. It is a constant recycling of funds. Never seen an organization built on a model like that."

"I think because it’s faith-based, religious,” Mueller said, “we always say God’s compounding our good work. It works. It’s been working."

Lefkow said Habitat for Humanity works because their model works.

 “There really is a great deal of support for Habitat,” Lefkow said. "Anybody who understands this model, buys in. There are some who just don’t understand. Those are going to be the folks who rise up and say, ’Not in my backyard!’ And things like that.”

Habitat for Humanity in Collier County has been remarkably consistent over the years.

“Our track record has stayed pretty steady over the last 20 years,” Lefkow said. "We’ve really maintained that average of between 90 to 100 homes a year. Our intention is to continue to grow. But a lot of that depends on resource. Matching resource with need is always the critical equation. So, if we bring in more resources, we can do more.”

Economics are not what slows down Habitat for Humanity in Collier County, according to Mueller.

“Major slowdowns for us are more orientated around hurricanes,” Mueller said. “A really bad hurricane season, or a pandemic like this. If it’s a hurricane, we have to go back and repair. During the pandemic we couldn’t bring out our volunteers, so we had to cut back."

Lefkow, who is an ordained minister, clearly loves her work with Habitat for Humanity.

"It’s been an amazing journey,” Lefkow said, “It’s been an incredible adventure every day. The amazing adventure that Habitat is. Because of the diversity of people we get to work with. Between interviewing and getting to know families that are going to become homeowners. Working with donors, working with congregations. Working with an incredibly dedicated board. Working with leadership that we have. We have a staff that is just incredible."

Lefkow appreciates the high moments that she is able to share with new homeowners.

"They’re all first-time homebuyers,” Lefkow said. "That moment that they attend that first homeowners orientation class. Even the selection visit is a good high moment, when members of our selection committee go visit a family. They know their application is advancing. So that’s a good moment, also. But the orientation class, when they meet other families whose applications have been approved, and they know that they’re going to be neighbors. And the relationships start to build. That’s cool to witness. When they close on their homes and get the mortgage and get their key. High moment. Then we come back and we invite people to be part of a home dedication when we bless and dedicate each house and each family. And we invite members of the community, congregations, volunteers that have helped work on houses. We do that usually in small groups. We do four, five, six home dedications at once. That’s where I still get to have that moment.”

Most of Mueller’s high moments come in the field.

“On a routine basis,” Mueller said, "you’ll get a homeowner, she’s putting in her time, and she’s done her work. She’s getting ready to go back home. Somebody will ask her, ‘Are you getting a home here?’ And she tears up. And she says, 'Yes!' And then you think to yourself, ‘It’s all worth it.”

“Actually,” Lefkow interjects, "every interaction with a homeowner is a high moment.”

Mueller is philosophical about the Habitat for Humanity homeowners.

"They haven’t been born with all of the advantages some of us have been born with,” Mueller said. "These are good people. You go on a selection visit, these people might have a hole in the roof, or they might have a hole in their floor. But the floor is clean. Their beds are made. Their kids are clean. Their kids are polite. Their kids are doing good in school and they do better when they have a home to live in. That’s the other thing that I don’t think people realize. Once your kids have a safe place to live, and you’re not worried about them, there’s less stress in the family. There’s more time for homework. And the schools they go to - we’re improving those schools. Those kids are getting an education.”

Lefkow leaves us with a quote from the founder of Habitat for Humanity, Millard Fuller.

"It’s been around 45 years,” Lefkow said. "This affiliate is one of the oldest. We’ve been around for 43 years. So, Millard had a great quote. He would frequently say, ‘A house is not everything. You’ve got to have clothes to wear, you’ve got to have food to eat. You’ve got to have education and access to jobs and healthcare. But a home is fundamental. It’s the cornerstone on which all human development is built.’”