Cape Fear Habitat Proposal 3310 Fredrickson Road
Wilmington, NC 28401 910.762.4744 CapeFearHabitat.org
Serving New Hanover, Pender and Duplin Counties
New Hanover County
Workforce Housing Services Program Proposal
Organization Name: Cape Fear Habitat for Humanity, Inc
DBA: Cape Fear Habitat
Type of Applicant: Private Incorporated Non-Profit Agency with IRS 501(c)(3) Designation
Date and State Established: February 20, 1987, in North Carolina
Contact: Lauren McKenzie, Executive Director
PROJECT SUMMARY
Project Name – Affordable Homeownership Opportunities for Low-to Moderate-Income
Families through New Construction and Naturally Occurring Affordable Housing (NOAH)
Preservation
Location Maps – Attached (Location Map.pdf)
Total Project Cost – $4,593,323
Funding Requested – $1.5 million
Other New Hanover County Support
• Land donations (4 single lots referenced in the Project Cost Budget.pdf)
• 2021 ARP Grant of which $274,701 will be applied to this project
• 2022 Non-County Agency Grant Funding of $50,000
Loan/Grant Terms and Interest Rate Request – Cape Fear Habitat is seeking a grant for
construction and rehabilitation projects for fiscal year 2022-23.
Project Type – Construction of new affordable single-family housing units and rehabilitation of
existing residential units for affordable single-family housing for sale through Cape Fear
Habitat’s homeownership program.
PROJECT PRIORITIES
Timeline – The new construction and NOAH preservation projects included in this proposal are
shovel-ready to break ground throughout the next fiscal year (July 1, 2022 – June 30, 2023).
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Construction start dates are included in the attached PDF, Project Cost Budget.pdf, with typical
completion for new builds taking approximately 4 – 5 months and 2 – 4 months for
rehabilitation projects, depending on the permitting process, weather, or supply chain issues.
Closing and occupancy are available to the homeowner immediately upon project completion.
Number of Units – 21
Strategic Goals Addressed – Increasing Stock, Improving Stock, and Increasing Access
AMI – Cape Fear Habitat serves families at 30% - 80% AMI through its new build and NOAH
preservation programs. NOAH rehabilitation projects are existing affordable homes that Cape
Fear Habitat acquires. We often perform extensive renovations to ensure these are sustainable,
healthy homes for families to purchase at an affordable price.
Household Mix
•All homes will be sold at appraised value unless that value exceeds the HUD
maximum sales price limit of $263,000. However, the average payable mortgage,
calculated at a 0% interest rate, we anticipate being $189,821 based on homeowner
affordability, ensuring their mortgage payment will not exceed 30% of their
household income.
•Based on the families currently assigned to these homes, we anticipate:
8 units will serve 30%-50% AMI
6 units at 51-60% AMI
7 units at 61-80% AMI
All units will be within the 30%-80% AMI range.
Vouchers – Some Cape Fear Habitat families are eligible for vouchers. By providing them the
opportunity to purchase an affordable housing unit, it will free up those voucher resources for
other families in our community. In our 35-year experience, we have assisted many families on
the voucher program and helped them pivot from public assistance, including public housing, to
become independent homeowners.
Preserving Affordability Beyond 15 Years – Cape Fear Habitat homeowners’ typical mortgage
length is 30 years. While some homeowners may satisfy this early, our deed restrictions provide
Cape Fear Habitat the first right to repurchase all Cape Fear Habitat homes, ensuring we can
keep housing stock at an affordable status beyond 30 years.
How WHSP funding will expand existing program and/or projects – A primary goal of our
strategic plan is to produce more affordable homeownership opportunities, doubling the
numbers of families we serve to 500 by 2025. To do that, we must not only increase our
production, but also have adequate land inventory to serve those families. While we are
meeting those goals in our more rural counties, we are faced with depleted land stock and
urgency around land acquisition in New Hanover County. Without developable land, as well as
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the ability to purchase existing housing stock and rehabilitate it, we won’t be able to meet our
families’ served goals by 2025. Leveraging funds through WHSP for our building program will
not only allow us to build more units, but free up financial resources to allow us the capacity to
make land acquisitions in the future to continue providing homeownership opportunities for
low-to moderate-income families in New Hanover County.
Cape Fear Habitat’s Unique Homeownership Program – Beyond Cape Fear Habitat’s ability to
build affordable homes, it has a program to prepare families for the responsibility of
homeownership. Individuals invest 250 hours and two-person adult families invest 400 hours
attending monthly financial literacy counseling, educational programs, and a hands-on Learning
Lab home maintenance course. They also partner with Cape Fear Habitat by volunteering in the
ReStores and working to build their home as well as the homes of other Habitat families.
PROJECT VIABILITY
Financial Feasibility
• Other Sources of Funding – Cape Fear Habitat leverages a diverse funding base for its
home construction and NOAH preservation programs through:
o Grants and Donations (47%)
o ReStore sales (13%)
o Mortgage Payments (38%)
o Other Funding (2%)
• Grants and Donations – These will come from a broad base of funders, including:
o Habitat for Humanity of NC via Office of State Budget & Management - $491,735
o Government Funding (NCHFA, City of Wilmington, New Hanover County, other
government sources) - $690,440
o Corporate Sponsors - $420,000
o Local Faith Communities - $160,000
o Individual Donations - $550,630
o Events - $237,120
Development Experience
• Track Record of Developing and Maintaining Affordable Housing Projects – Cape Fear
Habitat was founded in 1987 solely to provide affordable housing opportunities for low-
to moderate-income families in the area. For 35 years, the organization has been
continually growing and evolving to increase its impact and serve what has now become
a critical need in our community. It has served more than 350 families in New Hanover,
Pender and Duplin Counties through its new build, rehabilitation, and repair programs.
The majority of new builds and rehabilitations are in New Hanover County. Cape Fear
Habitat has a solid and established financial management system and a diversified
funding base. Past projects include:
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o Blendin Meadows – 27 homes located on Daniel Boone Trail off Gordon Road in
Ogden. Started in 2019; completed in 2022.
o Cottages at Cornerstone – 40 homes located on Prices Lane and Hope Springs Court
in Wilmington. Started in 2010; completed in 2014.
o Affordable Homes – In addition to the two neighborhoods mentioned above, Cape
Fear Habitat has built or rehabilitated 211 affordable homes in New Hanover
County, as well as 10 in Pender County and 4 in Duplin County since 1987.
o Infrastructure – Cape Fear Habitat has undertaken extensive infrastructure work for
the developments listed above. In addition, it has developed seven buildable lots in
the Northside community and Love Grove community, bringing in water/sewer
systems, creating storm drains and paving roads to make lots suitable for residential
development.
• Long-term Affordability – As a non-profit organization, Cape Fear Habitat is uniquely
positioned to provide necessary subsidies to ensure that the homeowner has an
affordable mortgage payment. We achieve this through grants, donations, ReStore
sales, corporate partnerships, and volunteer support. Homeowners’ mortgage payments
are also recycled back into the program to provide other families the pathway to
homeownership.
Although Cape Fear Habitat homes are now appraising for more, our maximum sales
price does not exceed $263,000, which is the New Hanover County HUD maximum sales
price limit. We ensure that the mortgage will be no more than 30% of household income
which requires us to offer reduced to 0% interest mortgages and, oftentimes, additional
principal subsidies beyond interest.
Management
• Financial Management – Cape Fear Habitat maintains stringent financial oversight of all
its operations. It undergoes an independent annual audit and its board of directors and
finance committee monitor finances monthly. Its creditworthiness has been affirmed
over the years through various lending relationships, most recently with Wells Fargo and
Dogwood State Bank, and has been approved for significant unsecured lines of credit.
While having access to lines of credit is a financial management best practice, Cape Fear
Habitat has not had to utilize them. The organization also upholds the highest
fundraising standards and has received a platinum rating for accountability and
transparency through GuideStar, now Candid.
• Management Team (bios attached, see Management Bios.pdf)
o Lauren McKenzie worked in the financial services industry before coming to Cape
Fear Habitat, serving as its Controller for four years before moving into the Executive
Director role. She maintains her CPA license and was recognized as one of 40 Under
40 by the Wilmington Chamber of Commerce in 2021.
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o Esmond Anderson has served as Cape Fear Habitat’s Construction Director for
nearly 21 years and is among the organization’s longest-tenured employees. Under
his leadership, the organization has continued to grow and expand its impact while
navigating challenges such as hurricanes, the pandemic, rapidly rising material costs
and supply chain issues. He has continued to increase the numbers of homes built
and renovated, serving more families each year.
o Board of Directors – The organization’s governing board is comprised of
experienced community leaders committed to the organization’s sound financial
management and increasing its ability to provide affordable housing. Eight
committees comprised of board and community members also meet regularly to
provide input on the organization’s varied operational areas.
Development Quality
• Quality, Safety and Durability – Providing safe and durable homes is a top priority for
Cape Fear Habitat. It maintains a portfolio of standardized home designs that provide
right-sized homes that are energy-efficient and maximize the use of land and materials.
All homes are built to quality standards as defined by SystemVision, the nation’s only
affordable housing guarantee program made possible by the North Carolina Housing
Finance Agency (NCHFA). SystemVision provides training and technical support that lead
to improved health, safety, durability, comfort and energy efficiency of affordable
homes in North Carolina. All SystemVision homes are third-party verified and
performance-tested for the following: Air Tightness & Framing, Ventilation & Moisture
Management, Insulation & Windows, HVAC Sizing/Installation & Duct Tightness, and
Pressure Balancing. Once completed, each home receives two guarantees, one for
energy use and the other for comfort.
Cape Fear Habitat maintains high standards in its building practices and utilizes durable,
high-quality materials, including:
o 2x6 Exterior Framing – allowing for higher R-value in walls
o Vinyl Siding – providing a 50+ year lifespan and easy maintenance
o Architectural Shingles – providing 50+ year life span and hurricane resistance
o Laminate/LVP Flooring – providing easy maintenance and ensuring better air
quality
• Site Plans/Environmental Quality – Cape Fear Habitat’s experienced construction team
regularly submits all site plans to state and local agencies for permitting approvals. Its
land development team reviews county zoning, flood zoning and lot size prior to lot
acquisition. We do not build homes in flood zones. Our projects meet the environmental
review standards of North Carolina Housing Finance Agency (NCHFA). Our team pulls all
required North Carolina and New Hanover County permit(s) before new construction or
rehabilitation projects begin.
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Cape Fear Habitat is moving to a model of pre-constructing its homes inside its
construction warehouse. This process reduces build times and helps eliminate waste,
allowing Habitat to build its homes quickly, and reduce cost and environmental impact.
Cape Fear Habitat is a North Carolina Licensed General Contractor, employs a Certified
Credit Counselor through the National Association of Certified Credit Counselors and has
earned a NHC Community Resiliency Model Training Certificate. Habitat works only with
licensed and vetted subcontractors for its plumbing, HVAC, and roofing.
• Comparable Size and Quality – The neighborhoods in which Cape Fear Habitat
constructs its homes are a match in terms of quality and home size. Cape Fear Habitat
provides five different house plans and future homeowners select siding, shutters,
shingles, flooring, and countertop. Home sizes range from three to five bedrooms, and
are from 1,200 – 1,600 sq ft, depending on the family’s needs and lot size. The majority
of houses are approximately 1,400 sq ft, three bedroom, two bath units.
New Hanover County Housing Goals
Cape Fear Habitat meets New Hanover County housing goals by quickly building quality,
durable new homes and preserving existing NOAH stock through its rehabilitation program. By
maintaining the first right to repurchase on all builds and rehabs, Cape Fear Habitat can take
affordable homes that come back on the market, quickly perform renovations, and return them
to the stock of affordable homes for sale. In addition, when families relocate or use the equity
generated through our program to purchase a home outside of the Cape Fear Habitat program,
it builds further generational wealth.
OTHER REQUIREMENTS
Equal Opportunity – Cape Fear Habitat is an Equal Opportunity Employer and encourages
diversity at all levels. Our construction team is 20% female. Of homeowners, 62% are Black,
19% are Hispanic, and 19% are White.
Insurance – Cape Fear Habitat meets all compliance requirements, including insurance and e-
Verify.
Letters of Support – Letters from Novant Health, Habitat for Humanity of NC and First Baptist
Church, three of Cape Fear Habitat’s partners and supporters, are included.
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ATTACHMENTS
• Cape Fear Habitat Proposal.pdf
• Letters of Support.pdf
• Location Map.pdf
• Management Bios.pdf
• Project Cost Budget.pdf
Organization Documents Folder
• 2022-2023 Summary Budget.pdf
• Articles of Incorporation.pdf
• Audited Financial Statement FY21.pdf
• Board Member List.pdf
• Cape Fear Habitat By-Laws.pdf
• Tax Exempt Status.pdf
Legacy Landing Site and House Plans Folder
• 3 Bedroom Haywood.pdf
• 3 Bedroom Iris Left Porch.pdf
• 3 Bedroom Iris Right Porch.pdf
• 3 Bedroom Whitney Left Porch.pdf
• 3 Bedroom Whitney Right Porch.pdf
• 4 Bedroom Manteo.pdf
• 5 Bedroom Savannah.pdf
• Haywood Rendering.jpg
• Iris Left Rendering.jpg
• Iris Right Rendering.jpg
• Legacy Landing Site Plan.jpg
• Manteo Rendering.JPG
• Savannah Rendering.jpg
• Whitney Right Rendering.jpg
• Whitney Left Rendering.jpg
Other Construction Site and House Plans
Folder
• 237 Buff Circle.pdf
• 241 Buff Circle.pdf
• 509 Morningside Rehab.pdf
• 522 McClure.pdf
• 807 N 6 Street.pdf
• 809 N 6 Street.pdf
• 904 N 8th Street.pdf
• 1008 N 7th.pdf
• 1405 Stanley Rehab.pdf
• 1415 Glenn Rehab.pdf
• 3841 Prices Rehab.pdf
• Iris Left Porch.pdf
• Iris Right Porch.pdf