The Message of Armenian Habitat Team on the Current Situation

May 15, 2008

Since our establishment in 2000, we have given 400 low-income families the opportunity of raising their children in decent homes, paying back to the Revolving Fund with their sweat and dignity.

Despite having been consistently ranked as one of the best affiliates in Habitat for Humanity’s Europe/Central Asia (HFH ECA) region since its inception, HFHI’s board of directors recently disaffiliated HFH Armenia (aka Armenian Habitat), for what they said was a failure “to comply with a sustainability standard that must be met by HFH organizations in nearly 90 countries around the world.”

We would like to spread some light on the sustainability standard mentioned in the release. Attractive as it sounds, the sustainability standard entails an inflation adjustment policy, which means that the beneficiary families will have to pay interest to cover “losses” due to inflation, a policy which is not currently enforced by HFHI for its affiliates in the United States.

As an Armenian non-governmental organization, Armenian Habitat could not legally charge interest. To get around the laws of Armenia, HFHI pushed for outsourcing the servicing of loans to an external credit company, charging an annual interest rate 9-11%, making mortgages unaffordable for the low income families that we have served so far.

Disregarding our explanations and the legal restraints, in December 2007 HFH ECA put our affiliate on probation (which entails suspension of Global Village trips and donations made after October 1, 2007) and demanded that our board assign full control to its representatives. We knew that in case we gave the control to HFH ECA, HFH Armenia would either have to change the target group of beneficiaries to those with significantly higher incomes, or limit its assistance to small-scale renovation programs, therefore excluding homeless families from our programs, with incomparably smaller added value to the families and community development.

Our fears were materialized after a recent HFHI press release announcing the launch of a new organization in Armenia starting with a new home improvement loan program. As the press release reads, “The innovative Habitat for Humanity-DIGH-First Mortgage partnership will offer loans of up to five years for house renovations and up to 10 years for completion of half-finished houses”. We have a confirmation email from Mr. David Atanesyan, the director of First Mortgage Company, that these loans will bear an interest rate of 13.5% which is withing the range of market rates.

We are glad indeed that Habitat for Humanity will continue to work with Armenia and welcome its re-entry. We are sure that housing credits will be in high demand and will be of overall benefit to Armenia. Simply, they will serve a target population with higher income than the group of low-income families that we beleive is our mission to serve.

To be able to continue to serve the thousands of families that are in dire need for our interest-free loans, we have created a new Armenian non-profit organization, Fuller Center for Housing Armenia (FCHA) (www.fullercenterarmenia.org), and signed a covenant partnership with The Fuller Center for Housing (TFCH), an organization founded by Millard and Linda Fuller, the founders of Habitat for Humanity (www.fullercenter.org).

The FCHA will provide long-term, interest-free loans to low-income families. Their monthly repayments flow into a Revolving Fund which are lent out in turn to help more families, providing the financial foundation for a sustainable community development effort. The construction programs of FCHA include but are not limited to the following: completion of half-built house, purchase of an affordable apartment, roof reconstruction, installation of heating and sanitation systems, and interior renovation.

To accomplish its mission, FCHA is garnering volunteer and financial support from individuals, organizations, corporate partners and churches. International and local volunteers come together to work shoulder to shoulder with the families and help decrease the construction costs. FCHA keeps costs as low as possible; almost all donations fund the actual construction program.

We hope you will understand and accept the choice of our team, as this was the only way for us to continue doing what we believe in, and help needy families to have a home.

With faith,
Armenian Habitat team

The Message of Armenian Habitat Team on the Current Situation

February 18, 2008

Dear friends,

Since Habitat for Humanity Armenia was established in Armenia in 2000, thousands of people in our communities and abroad have been inspired by our mission of working in partnership with God's people in need to build or renovate simple, decent and affordable houses without interest or profit, thereby witnessing God's love in action, and advocating the right to decent shelter as a matter of conscience and action.

Since then, we have given 400 low-income families the opportunity of raising their children in decent homes, paying back to the Revolving Fund for Humanity with their sweat and dignity.

Hundreds of local and Global Village volunteers have worked shoulder to shoulder with these families, sharing their hope and faith in the future.

Our advocacy programs have made the government invest more than $150,000 in eradicating housing poverty in joint effort. Thanks to our in-country reputation we have recorded a multii-fold increase in local donations during the last 2 years.

Having in mind the importance of protecting the Revolving Fund for Humanity from inflation, HFH International has developed an inflation adjustment policy, according to which interest should be charged from beneficiary families to cover the loss caused by inflation, to make the fund more sustainable.

The current status of Habitat for Humanity Armenia as a non-governmental public organization does not allow us to charge interest. The only legally possible and financially viable option is to create a credit company; but HFH Europe and Central Asia Area office(HFH ECA) has not accepted that solution on the pretext that HFHI or HFHA do not have the necessary experience (although we intended to hire professional staff members for that activity), offering instead to use an existing credit company from Armenia to make the transactions. However, the credit companies ask 5% (overhead and extra costs) for servicing the loans which makes the burden of repayment unbearable for our target group. Thus the beneficiary with a loan of $10,361 will have to pay $23,017 in 20 years (instead of $17,246 that they would have to pay if we established a credit company - $5771 more which is a huge difference for our current families).

In addition, as the legal consulting company “Ameria” has pointed out, “The stated activity … might be classified by the Republic of Armenia Central Bank as activity falling under the definition of a “credit organization” requiring  licensing by the stated regulator. There is potential danger/risk of being classified as engaging into an activity requiring the license from Central Bank of Armenia. Furthermore, in case Foundation is engaged in systematic issuance of loans/borrowings, then the risk of being subjected to sanctions of the Central Bank of Armenia will considerably increase as stated hereunder”.

Disregarding our explanations, the legal restraints, and accusing us of unwillingness to comply with the inflation-adjustment policy, HFH ECA has put our affiliate on probation (which entails suspension of GV trips and donations made after October 1, 2007) and has demanded that our board  assign full control to its representatives, without presenting a plan of activities, as to what solution they will choose to cope with inflation, what type of programs they will implement, etc., otherwise threatening us with disaffiliation.

As many of you know, and have witnessed, all our team is deeply committed to our mission of helping low-income families. We have well-founded reasons to believe that in case we give the control to HFH ECA, HFH Armenia will have to change the target group of beneficiaries undermining the needs of low-income families, or limit its assistance to small-scale renovation programs of no critical importance, therefore excluding homeless families from our programs, with incomparably smaller added value to the families and community development.

We are resolute to protect the interests of our current target families, and not change the focus of our program. We sincerely hope that you as our donors and volunteers share our concerns and believe that you will be with us while we continue to serve our true mission.

We are doing our best to find a constructive solution, and pursue our mission within the Habitat for Humanity network. If, however, staying with HFH International compromises our mission of helping low income families with affordable loans, we will continue to work with the people of Armenia as an independent not-profit housing organization.

Dear friends, this is indeed a critical period for our organization, and your thoughts, prayers, and support are of utmost importance to us.

Please do not hesitate to contact us if you need more information. Our email address is armenianhabitat@netsys.am.

In Christian Partnership,

Armenian Habitat team

"I LIVE IN DOMIK" CAMPAIGN CONDUCTED IN YEREVAN

Cardboard box houses, depicting the substandard conditions of people living in containers, so-called "domiks", and beneficiary children drawing their dream house on them attracted the attention of passers-by, journalists and guests of Youth Park in Yerevan on October 19, 2007.

The visitors could read about the impact of poverty housing on families and children, watch the performance of children about their experience and hardships in substandard shelters, and see the photo-exhibition of Habitat for Humanity Armenia.

The campaign was one of the activities of HFH Yerevan's Advocacy Campaign "Home To Each Family", aiming at raising public awareness on housing poverty and getting bodies local self-governance to allocate means for the reduction of housing poverty in Armenia.

SEPTEMBER 1ST: HABITAT HOMEOWNER CHILDREN GO TO SCHOOL FROM A NEW HOUSE

It is September 1st, and little Susanna goes to school from her new house. She is very excited as finally she can do her homework on her nice desk, in her room, full of light.

Since her birth Susanna has lived in the small basement of their house, dark and damp, where she had no place of her own.

More than 20.000 children in Armenia do not have permanent shelter. Living in poor or overcrowded housing conditions affects a child's ability to learn, which can have a lasting impact on a child's chances of succeeding in life.

Habitat for Humanity calls for all stakeholders to take steps to put in place efficient housing policy so that all our children grow up in decent homes.

 

MEDIA BUILD IN KHOR VIRAP VILLAGE

On July 28, 2007, the representatives of Armenia TV, Kentron, Shant, Yerkir Media, Armnews TV stations, ARKA news agency, Public Radio and Radio Van put down their cameras, recorders, notebooks and pens and picked up shovels and buckets to help build a Habitat house in Khor Virap village, Armenia.

The event was implemented in the framework of the advocacy project “Home to each family” implemented by Habitat for Humanity Armenia Yerevan affiliate, financed by USAID through Counterpart International Civic Advocacy Development program and Civic Development Partnership Foundation.

The goal of the event was to create an informal atmosphere for discussion with journalists about the scope and impact of housing problems in Armenia and about the importance of frequent media coverage of the issue, as well as to give them an opportunity to personally get involved in supporting a homeless familiy.

The journalists worked with great enthusiasm and zeal, hand in hand with village deputy mayor, local community volunteers, Habitat staff  and the family of Gevorgians.

The Gevorgyans are a refugee family from Baku. They arrived in the village of Khor Virap in 1988 and were housed by various villagers for three years. When the land was privatized in 1990, the Gevorgyans obtained some land with permission to build a house on it. The family started construction right away. By 1992, they were already living in the basement of their soon-to-be-house, with the hope of finishing it soon but they never could because of financial problems.

Aleksey, while talking about the community, said: “We are always surrounded by people who understand the hard situation we found ourselves in and are always ready to help any way they can. We are very hopeful that soon, with Habitat’s help, we will be able to finish the house and enjoy our life in the homeland.”

There are 40 000 families in Armenia, who like Gevorgyans, do not have a permanent shelter. We call on mass media and all other stakeholders to join us in advocating for these families so that every child in Armenia enjoys childhood in a decent, healthy home.

HFH LORI ORGANIZED A CARDBOARD BOX ADVOCACY CAMPAIGN "I AM HOMELESS"

On June 12th, 2007, Habitat For Humanity Lori affiliate organized an advocacy campaign "I am homeless" in the town of Vanadzor, near the Puppet theatre. The aim of the campaign was to raise awareness among the general public about the huge scale and the adverse impacts of housing poverty in Armenia and to call on urgent action to take steps to secure the future of our children in simple, decent and affordable homes.

Cardboard boxes symbolizing the inadequate conditions in container-houses, the so-called "domiks", were placed in the park. On each of these domiks the visitors could find information on how housing poverty affects the health, education, and the socio-economic development of the family.

The beneficiary children of Habitat homeowner families acted in the performance "Homeless days", which reflected their own experience while they lived in the "domik district" of Vanadzor before moving to their Habitat house.

A similiar campaign took place in the town of Alaverdi; two more are planned in Stepanavan and Tashir communities. We are hopeful that the campaigns will motivate the government and other stakeholders to take more practical steps in eliminating housing poverty in Armenia.

 

VIVACELL BECOMES THE LARGEST LOCAL CORPORATE DONOR OF HABITAT FOR HUMANITY ARMENIA!

“Because we believe, we believe in Armenia, in the future of Armenia”, said Mr. Ralph Yirikian at the opening of ceremony of His Holiness Karekin II Work Project in the Gevorgian Seminary, Etchmiadzin.

In April 2007 VivaCell became the largest local corporate donor of Habitat for Humanity Armenia, committing 10 houses for low-income families in Ararat, Lori and Vayots Dzor regions of Armenia. Thanks to VivaCell, these 10 families will move to their simple, decent, affordable homes before the advent of harsh Armenian winter and see the New Year with new faith and new dreams.

The donation is a clear manifestation of VivaCell’s commitment to the principles of Corporate Social Responsibility and to the development of communities in Armenia.

On August 16, 2007, VivaCell management and staff built together with the selected families in Khor Virap. This hands-on experience was good opportunity for donors to meet and communicate with the family for whom they contributed funds. This also helped the families to understand the values of Habitat for Humanity and to be more responsible towards the help they have been provided. VivaCell employees gained a deeper understanding of company's commitment to working with and for the community. On August 18, 2007 VivaCell General Manager Ralph Yirikian participated in the homeblessing ceremony of Haroyan family and gave a Bible to them as a symbol of faith.

VivaCell encourages companies and businesses working in Armenia to adopt the principles of social responsibility and make community investments an indispensable part of their corporate culture.

The business structures of Armenia have a great potential and possibilities. Following the VivaCell example, sharing VivaCell commitment to community contribution, they can largely promote the decent quality of life of Armenian families and stimulate the socio-economic development of our Homeland.

 THE FIRST THRIVENT BUILD IN ARMENIA COMPLETED!

Thrivent Builds Worldwide volunteers work side by side with members of host communities to build simple, affordable homes for some of the world’s 1.5 billion people who lack decent shelter. Thrivent Builds Worldwide is a joint effort of Thrivent Financial for Lutherans and Habitat for Humanity International.

April 13-29, 2007 for the first time Armenia hosted Thrivent Build team. The team worked for the house of Abrahamyan family in village Zovuni.

Abrahamyan family, Arzuman, Armine and their three children, had to sell their house to buy a wheelchair and medicine for the eldest daughter, Silva, disabled from childhood. They bought an unfinished house with the rest of the money but could not complete it with the income of shoemaker and construction worker. Their friend temporarily sheltered the family in a 2-room flat on the 5th floor of a condominium buiding, which was unfit for the needs of a disabled person, and Silva could see the sunshine and be in the open air very rarely. Habitat for Humanity program was a salvation for the family. With zero-interest long-term mortgage they can now enjoy their right to decent, simple and affordable house.

The Thrivent build team from San Antonio, Texas, United States, worked hand-in-hand, shoulder-to-shoulder with the homeowner family and the local community volunteers, sanding, plastering, and painting for two weeks, and participated in the Home-blessing Ceremony.

"Working with the Armenia/Yerevan Habitat For Humanity team was one of the most rewarding and fun experiences I have ever had.  It was a blessing for me and for my whole team, and I cannot wait to return!", said Martha Willkins, the team leader.  "The Yerevan affiliate has a wonderful staff and I pray that God will continue to bless each and every one of you".

Habitat For Humanity Armenia is looking forward continuing this wonderful partnership and hosting more Thrivent Build teams in the coming years through Yerevan, Lori and Vayots Dzor affiliates.

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