Habitat for Humanity of Gaston County will join Habitat for Humanity of the Charlotte Region, the two groups announced this week.
The two affiliates expect to finalize the consolidation by Oct. 1, which leaders say will help them serve more families with affordable housing solutions. The move will also bring additional programs to Gaston Habitat.
The two groups will operate under the Habitat Charlotte Region name and serve low- to moderate-income homebuyers and homeowners in Gaston, Iredell and Mecklenburg counties.
Habitat Charlotte Region will continue to be headquartered in Charlotte, with offices in Gastonia and Davidson, and it plans to operate seven ReStores in Charlotte, Cornelius, Gastonia, Mooresville, Pineville and Statesville. Iredell County has been part of the Charlotte-based group for several years.
Gaston County Habitat initiated the consolidation talks. The organization has been operating without an executive director since August 2023. Its board hired Lisa Quisenberry in September 2023 in an interim role and asked her to assess the needs in Gaston County and the organization’s capacity to meet them, says Patrick Mumford, Gaston Habitat’s board chair.
“The board decided to pursue an option of consolidation with the Charlotte Region affiliate as the most expedient and effective way to address the growing challenges for housing solutions in Gaston County,” says Mumford, who has also led the Gaston Business Association since 2019.
Consolidation will help both organizations serve more families more quickly, says Habitat Charlotte Region CEO Laura Belcher.
The Gaston organization employs about 22 workers and has net assets of about $5.5 million as of June 30, 2023. It had net assets of almost $4.4 million on June 30, 2021.
The Charlotte group employed 248 workers and had net assets of about $63.5 million as of June 30, 2023, according to the most recent IRS forms filed by both organizations. Charlotte Habitat had almost $41.9 million in revenue, compared to about $930,000 for the Gaston group in fiscal year 2023, according to those same reports.
Charlotte had more than 4,200 volunteers last year, although it brought in more than 2,000 volunteers as it was the host of the 37th Jimmy and Rosalynn Carter Work Project, which resulted in 27 homes being built in The Meadows at Plato Price neighborhood in west Charlotte The organization reported having 2,841 volunteers in 2022 and 983 volunteers in 2021. Gaston Habitat has reported having between 89 and 130 volunteers annually in that same time period.
Starting with its first home in 1989, Habitat Gaston has built more than 125 homes. Since 1983, Habitat Charlotte Region has served nearly 4,600 families with affordable housing, a number that includes home repairs.
Combined, the two organizations report they will have:
- Assets of nearly $69 million;
- Nearly 1,100 mortgages; and
- Volunteers contributing about 80,000 hours of work annually.
Habitat Gaston County expects to complete a mixed-income neighborhood, Dixon Village, this year. The 7.5 acre site in north Belmont will include 28 homes, about one-third of them for Habitat homeowners.
The combined affiliate plans to add programs in Gaston County to serve local residents, including home repairs to help preserve existing affordable housing.
Here are some questions Belcher and Mumford answered via email:
Why do this now rather than years ago?
Belcher: Regionally and nationally we are experiencing a housing shortage that is requiring more creative solutions to the crisis. This decision was influenced by the sense of urgency we feel around the need to address affordable homeownership challenges locally.
Mumford: The (leadership) transition certainly gave an opportunity for Gaston to review strategies and objectives for serving the community.
Gaston County Habitat saw revenue decrease from $2.5 million at the end of fiscal year 2022 to $925,000 in fiscal year 2023; revenue after expenses went from $963,800 to $170,700 in that same time period. Fund balances had increased. Was Gaston Habitat struggling financially?
Mumford: The revenues of Habitat affiliates can vary significantly from year to year, primarily based on the number of homes sold each year and the timing of receiving grant proceeds. Habitat Gaston is not struggling financially and unaudited revenues for this past fiscal year will be approximately $5 million.
Will this produce cost savings?
Mumford: There will be some savings on services that are duplicated but there will be no position eliminations or related personnel savings.
How do you convince donors that their money will stay local?
Belcher: There are significant housing needs throughout the communities we serve. Specific investments from donors with restrictions as to their utilization (by program or geography) will be honored and stewarded.
Mumford: Our discussions with the Charlotte Region affiliate were direct regarding the need for accommodating donors who wish to designate their gifts to Gaston County families. Both affiliates have long histories of assuring donors that their gifts will be used as designated, and we have no reason to change these policies.
Changes in day-to-day operations?
Belcher: Habitat Charlotte Region is excited to share and expand programming in Gaston County – specifically, plans are being developed to expand Critical Home Repairs and Financial Education programming to serve the residents of Gaston County. (More to come in the future about scope and timing).
Mumford: The current facility in Gastonia will be maintained along with program and other staff on site.