Flexible Capital Access Program (“FlexCAP”)

FlexCAP is a Habitat for Humanity International ("HFHI") program which enables affiliates to borrow against selected mortgages in their portfolios. Under the program, HFHI issues 5 or 10 year notes to investors and then re-loans all proceeds to the participating affiliates. FlexCAP has a 100% on-time repayment rate to investors.

FlexCAP is designed to accelerate the receipt of income from mortgages and recover the cost of Habitat homes in a much shorter period of time, providing affiliates with ready cash with which to build more homes. Through FlexCAP, HFHI has developed a consistent secondary market for Habitat mortgages on a nationwide basis, providing affiliates with a vehicle to borrow at favorable rates.

Financial description

Under the FlexCAP program, HFHI issues 5 or 10 year notes, which are secured by a collateral assignment of general obligation notes from participating affiliates. These affiliate notes are, in turn, collateralized by notes and mortgages selected by the affiliate from its mortgage portfolio.
The notes contain multiple layers of credit protection for investors. These include required substitution of performing mortgages for non-performing mortgages, notes are general recourse obligations of affiliates, a cash reserve equal to one quarterly payment and HFHI guaranty of 5% of the outstanding balance. Since inception, FlexCAP has a 100% on-time repayment rate to investors.
HFHI charges affiliates an interest rate spread of 0.50% and a processing fee of 1%.