How Habitat for Humanity Builds Affordable Homeownership Opportunities

Why this conversation matters

When most people think of affordable housing, they imagine rental units. But what if the long-term solution is helping working families become homeowners? On this episode of the Affordable Housing & Real Estate Investing Podcast, Kent Fai He sat down with Velma de la Rosa, Director of Development at Habitat for Humanity Orange County. Velma shares her story as the daughter of immigrant parents, explains how Habitat works at both the local and international level, and reveals what it really takes to move families from instability to homeownership.

This conversation is a must-listen for affordable housing investors, developers, and advocates who want to understand the mechanics, challenges, and human stories behind creating generational wealth through affordable homeownership.

How does Habitat for Humanity actually work?

Most people recognize the Habitat for Humanity name, but few understand how the organization operates. Velma explained that Habitat has an international parent organization that provides brand recognition, advocacy standards, and corporate partnerships. Local affiliates, such as Orange County, tailor programs to their community needs.

• International support: Access to national corporate relationships, donated appliances, and tax credit leverage.
  
  

• Local impact: Tailored approaches to land, zoning, and partnerships that make sense in each city.
  
  

• Statewide advocacy: Affiliates band together to influence policy and public funding.
  

This hybrid structure ensures Habitat can operate with both global scale and local sensitivity.

What challenges make affordable homeownership projects so difficult?

Velma compared the entitlement process to planting a seed: “You don’t see what’s happening underground, but the roots are growing.” Entitlements, rezoning, and density bonuses often take years before a single nail is hammered.

Common obstacles include:

• Lengthy entitlements: Projects can be delayed months or years.
  
  

• Unexpected hurdles: Even something as small as trash enclosure placement can stall approvals.
  
  

• Financing gaps: Pre-development costs like soil studies, appraisals, and environmental testing are often unfunded by construction lenders.
  
  

Habitat overcomes these challenges by bringing all city departments into the same room early, reducing delays and ensuring consensus before costly revisions.

How does Habitat for Humanity finance its projects?

Habitat relies on a three-part financing model:

1. Home sales: Families purchase homes at affordable rates tied to their income.
   
   

2. Subsidies: City and state programs offset part of the development costs.
   
   

3. Fundraising: Corporate sponsorships, events, team builds, and ReStores generate additional revenue.
   
   

Velma highlighted how strategic partnerships with CDFIs like NeighborWorks helped Habitat secure below-market construction financing around 5 percent—critical when banks were quoting 7–9 percent.

What kinds of families benefit from Habitat programs?

One of the most moving stories Velma shared involved a single mother and social worker. When she first arrived in the U.S., her family lived in a garage without access to a restroom. They had to plan trips to Target to use the bathroom. Decades later, through Habitat, she and her two children now own a safe, permanent home in Santa Ana.

Stories like this show that affordable homeownership primarily benefits workforce families: teachers, social workers, first responders, and others who contribute to their communities but are priced out of ownership.

What values drive Habitat’s work?

Velma emphasized that Habitat projects are built on dignity, respect, and quality. Affordable homes should never be substandard. Every project is developed with the same expectation of safety and excellence as market-rate housing.

Her three guiding values for her team, her children, and anyone in housing development are:

• Dignity and respect: Treat families as partners, not recipients of handouts.
  
  

• Excellence and quality: Build homes families can be proud of.
  
  

• Integrity and accountability: Do what you say you’ll do, and be transparent about outcomes.
  
  

Key Insights for Investors and Advocates

• Collaboration is non-negotiable. Affordable housing requires government, corporate, nonprofit, and community partners working together.
  
  

• Plan years ahead. Secure financing and entitlements well before construction starts.
  
  

• Affordable homeownership creates generational stability. Rental subsidies solve short-term needs, but ownership builds long-term wealth.
  
  

• Every detail matters. Even small site plan elements can stall or derail a project.
  
  

• Workforce families are the core. Affordable housing is not charity—it’s supporting people who already strengthen our communities.
  
  

Best Quotes from Velma de la Rosa

“I believe in homeownership, not just affordable rental housing, because it stays with you for your entire life and helps you build equity and wealth.”

“You might not be pushing a nail through a beam, but there’s all this other activity in the entitlement and financing stages. That’s just as important.”

“Affordable housing today is really workforce housing. It’s working families who cannot afford to purchase.”

Common Questions About Habitat for Humanity

How does Habitat decide who gets a home?
Families apply through a rigorous selection process based on income, need, and willingness to partner through sweat equity and training programs.

Does Habitat give away homes for free?
No. Families purchase homes with affordable mortgages, often tied to income levels, which ensures pride of ownership and long-term stability.

Why do Habitat projects take so long?
Much of the timeline is consumed by entitlements, rezoning, financing, and pre-development work like soil studies and design approvals.

How can professionals contribute?
Architects, engineers, contractors, and consultants can donate services or partner on projects. Volunteers and donors also play critical roles.

What’s the biggest misconception about affordable housing?
That it only serves people “in crisis.” In reality, it provides stability for working-class families who form the backbone of local communities.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Through conversations with leaders like Velma de la Rosa, the podcast equips investors, developers, and advocates with actionable strategies to expand affordable housing.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.