Midland Habitat for Humanity

What it reported doing in 2024

For the year ended June 30, 2025, Midland Habitat for Humanity operated the following programs:(i) Affordable Homes Program: Land Development: As a homebuilder, Habitat will always need land and lots to construct homes, typically at the rate Habitat is building and selling houses each year. In order to ensure buildable lots in perpetuity, Habitat actively seeks donations of land/lots and purchases land/lots when donations are not possible. After acquiring the land, Habitat hires and works with contractors to do all the work needed to transform an undeveloped tract of land into a subdivision with roads and utilities ready to build houses on. This work requires extensive time and capital to ensure that Habitat has the land/lots needed to continue its program.Builder: Habitat is a construction company at its core and Habitat has two different housing models that Habitat constructs homes for.Traditional H1 Homes: This is our traditional Habitat model where homes are built and sold to people making 30-60% of the area's median income. People qualifying for this model must meet income guidelines, credit score minimum, complete sweat equity hours helping build homes, and complete a holistic homebuyers college course giving them the tools they need to thrive once they purchase their home. This model uses volunteers to help build homes and they are sold at cost with a 0% interest mortgage.H2 Homes: This is a supporting program that builds and sells homes targeting people making 60-80% of the area's median income. These homes are not built with homeowner sweat equity, donated materials, or volunteer construction help. Once completed, these homes are sold on the open market without the requirements of the traditional H1 model. This program serves three purposes 1) provides additional housing in a price point for-profit builders cannot afford to build in, 2) helps low-income families who dont qualify for our traditional program a homeownership option 3) provides program revenue used for land acquisition, and development in an ever-increasing market.Mortgage Company: Habitat sells H1 homes at no profit with a 0% interest loan, because that is not a financially viable option for banks Habitat has to issue and service its own mortgages to make that a possibility. This program allows Habitat to manually underwrite its loan to tailor requirements to Habitats low-income population which is almost always a first-time homebuyer. The income from the mortgages issued goes to support the overhead of the organization allowing it to sell homes at cost, without the need for a profit.(ii) ReStore: Habitat operates ReStore which is a non-profit retail outlet specializing in the resale of quality new and previously owned building materials, home furnishings, and appliances at 50-75% off retail prices. The income from the ReStore goes to support the overhead of the organization allowing it to sell homes at cost, without the need for a profit.

Financial Efficiency

• Mission deployment rate: 52.7%; rating input score 53
• Program expense ratio: 92.3%; rating input score 92
• Fundraising efficiency: $32.99 raised per $1 spent on fundraising; rating input score 71; 71st percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 94.4%; rating input score 94; 25th percentile among comparable filings
• Governance controls: 8 of 8 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 43.8%; rating input score 90; 90th percentile among comparable filings
• Total-asset coverage ratio: 3.59; rating input score 78; 78th percentile among comparable filings
• Liabilities to assets ratio: 0.04; rating input score 72; 72nd percentile among comparable filings
• Officer compensation ratio: 3.8%; rating input score 63; 63rd percentile among comparable filings

Growth

• Program expense growth: 7.5% per year; rating input score 100; 53rd percentile among comparable filings
• Revenue growth: 8.4% per year; rating input score 100; 62nd percentile among comparable filings
• Asset growth: 9.5% per year; rating input score 100; 57th percentile among comparable filings