Law changed to expand eligibility for Habitat for Humanity

The Cape Area Habitat for Humanity will have more flexibility in deciding which families are eligible to obtain help, thanks to a new state law.

In January when the Missouri minimum wage rose to $7.05 an hour, the total income for a two-earner family of four rose just enough to exceed the eligibility limit for affordable housing units supported by tax credits.

Habitat had been turning away some families before January because of income limits, Habitat president T. Robin Cole said, but the issue came into focus when the minimum wage increased.

"We found we were only able to get people approved who were single-earners, with one working person in a family," Cole said. "If there were two working people in a family, we couldn't get them approved."

With the help of Cape Girardeau's two lawmakers, state Rep. Clint Tracy and state Sen. Jason Crowell, that has been changed. They sponsored and won passage, without opposition, of a bill doubling the earnings level allowed for people in owner-occupied affordable housing. Gov. Jay Nixon signed the bill into law June 26 and it will take effect Aug. 28.

The Cape Area Habitat for Humanity uses $300,000 in tax credits annually to support is operations. The credits allow qualified donors to provide goods, services and cash in exchange for a credit that, with other tax deductions, cuts the cost of giving to about $1 for every $10 donated. But those tax credits also require Habitat to stick to income limits for affordable housing.

Eligibility for subsidized housing is based the median family income for an area. For a family of four under current law, that limit is 50 percent of the median family income for similar-sized families in rural Missouri, or $27,850 annually. Full-time earnings for two people making minimum wage would total $29,328 in a year. The bill sponsored by Tracy and Crowell doubled the limit for families trying to own their home while leaving it unchanged for rental units.

While the new limit is now $55,700, Cole said Habitat will set a lower threshold to make sure that families selected for homes are those that would not be able to find conventional home financing to make a purchase.

"If they can afford a mortgage they are not our customer," Cole said.

rkeller@semissourian.com

388-3642

<B>Does this affect you?

Have a comment?

Log on to semissourian.com

Pertinent addresses:

117 N. Middle St., Cape Girardeau, Mo.