Habitat for Humanity Detroit closes both ReStore locations in Detroit

DETROIT - Habitat for Humanity Detroit is announcing layoffs and the closure of its two Detroit ReStore locations. 

The organization, headed by former Detroit City Councilman Ken Cockrel Jr., said it has been hit hard by the loss of government funding and the decline of corporate sponsorships. 

"When I joined the organization roughly a year ago, the Board charged me with addressing several financial issues. These included a mortgage delinquency rate over 40 percent among our homeowners, a large number of empty homes in our portfolio, and ReStores that had not been profitable,” Cockrel said in a news release. 

Statement from the organization:

Habitat Detroit has spent the past year addressing these issues by eliminating non-essential positions, working to modify the loans of some homeowners, unfortunately foreclosing on others, securing more donated items to reduce overhead expenses, and outsourcing some business functions. While the organization has seen some improvement in ReStore revenues and reduced the delinquency rate, Habitat Detroit has also been hit hard by the loss of government funding and a decline in corporate sponsorships. As a result, the organization has had to take a long hard look at the current business model.

Habitat for Humanity is an organization with a proud history and legacy of providing simple, decent affordable housing throughout the world. The Board and Staff believe Detroit and Southeastern Michigan will be well served by the organization’s continued fulfillment of that mission in Detroit and Wayne County.

The Board of Directors has approved a strategic action plan in place that includes both short and long-term strategies for infusing the agency with needed resources, financial restructuring, and assessing the current business model for greater sustainability. The goal is to see staff levels increase by early Spring, open a new ReStore location, and reorganize the agency to provide a higher level of service pursuant to our mission to provide strength, stability and self-reliance through shelter.

Habitat Detroit is seeking financial support from its current and former donors as well as new sponsors that would help create additional neighborhood and community impact for another 30 years and more.

Donations can be made through Habitat for Humanity Detroit’s website at:

About Habitat for Humanity Detroit

Habitat for Humanity Detroit is an affiliate of Habitat for Humanity International, a nonprofit ecumenical Christian housing ministry providing decent, safe and affordable housing to low-income families in Detroit. Since 1986, the Detroit affiliate has rehabilitated and/or built new houses in partnership with more than 350 families. Financial support, gift-in-kind donations and volunteer labor allow Habitat for Humanity Detroit to continue building affordable homes with those in need of improved housing. For more information please visit www.habitatdetroit.org or call 313-521-6691.

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