2005 Annual Report

Thanks to all our sponsors, volunteers and supporters

Designed by Orchid Designs www.orchiddesigns.net Š Habitat for Humanity, 2006

Cover photo: BAILA LAZARUS / ORCHIDDESIGNS.NET

Derek Hodgkinson Fraser Valley Health Authority

Jeanette Thompson Broadway Lodge

Jeffrey Monachello

Board Members Jim Lippert Retired

Grant Thornton LLP

Independent Software Professional

Pacific View Construction

Kara McNair

Kim Pettersen

Fasken, Martineau, DuMoulin LLP

Wayne Stewart Ivan Ing

Optimum Public Relations

Ernst & Young Orenda Corporate Finance Inc

VeriChip Corporation

Executive Director

COBS Bread

Michael B. Litchfield

Thomas Walsh

Nurez Khimji

Anneke Rees

Executive Director

Claudia Shaw

Office Administrator

Staff

Anneke Rees

Adrian Archambault Manager of Volunteers

Tom Riessner

ReStore Manager

5. MORTGAGES PAYABLE

A first mortgage for $194,240 was payable to the British Columbia Housing Management Commission. Interest was charged at the lender’s borrowing rate plus 1/16% (to a maximum of the Royal Bank prime rate plus 1%).

The British Columbia Housing Management Commission also provided the Society with a $150,000 second mortgage for the purposes of construction at the 8745 Government Street, Burnaby, B.C. project. The $150,000 was advanced to the Society on April 9, 2002, $50,000 of which was used to repay a promissory note. Advances under the second mortgage were interest-free for six months from the date of the first advance. Interest after that was charged at the same rate as the first mortgage.

Both mortgages were due on December 31, 2002. However, on February 28, 2003 the British Columbia Housing Management Commission confirmed its intent to renew and combine the first and second mortgages. Monthly payments on the combined mortgages are to be for interest only until such time as strata lots are sold. Principal payment of $12,750 are to be made for each strata lot sold and subsequently payments of $450 per month are to be made for each strata lot sold. The monthly payments will first be applied to interest and the balance, if any, to principal. All unpaid principal and interest is due on the combined mortgages on December 31, 2007.

The Society sold four strata lots in 2002 and has made the required payment of $51,000 to the British Columbia Housing Management Commission. Monthly mortgage payments of $1,800 have been made on the mortgage since June 1, 2002.

The Society completed another four strata lots during 2005 and has made the required payment of $51,000 in December 2005. Monthly mortgage payments of $1,800 to the British Columbia Housing Management Commission have been made since December 1, 2005.

6. IN-KIND DONATIONS

During the year ended December 31, 2005 the Society recorded in-kind contributions of $nil (2004 - $41,823), representing the fair value of donated goods donated for the Society’s construction activities.

7. CONTINGENCY

Volunteers at ReStore

The Society has granted the Province Rental Housing Corporation (“PRHC”) an option to purchase the land, and any buildings constructed to that time, at 8745 Government Street, Burnaby, B.C. PRHC has waived its right to exercise the option except if the Society fails to commence construction on the site by December 1, 2003, declares insolvency or defaults in performing the terms of an agreement with PRHC to provide affordable housing. Should PRHC become entitled to exercise its option, the purchase price will be equal to the cost of the land less stipulated amounts based on the number of months between the exercise date and December 31, 2000.

8. COMPARATIVE FIGURES

The comparative amounts have been reclassified where necessary to conform to the presentation used in the current year.

Habitat for Humanity Society of Greater Vancouver. Mailing address: PO Box 60577, Granville Park PO, Vancouver, B.C. V6H 4B9.

604-681-5618 www.vancouverhabitat.bc.ca.

2 Habitat for Humanity Annual Report

Habitat for Humanity Annual Report 11

2. PROGRAM ACTIVITIES

During 2000 the Society commenced construction of a multiple unit housing project at 8745 Government Street, Burnaby, B.C. The Society incurred design and construction costs on this project of $298,728 during the year (2004 - $328,370). The Society had purchased the land for $194,250 in 2000. The Society intends to construct a total of 27 units in this project, and completed and sold 4 units in June 2002. The Society completed construction of 4 additional units in 2005 and the sale of these units will be completed during 2006.

3. RESTORE

The Society opened ReStore, a retail outlet that accepts donation of new and used building materials and resells those goods to the public, on October 5, 2002. All proceeds from the sales through the ReStore are used to support the activities of the Society.

4. MORTGAGES RECEIVABLE

The Society sold four strata lot units during 2002 for total proceeds of $375,200. On the sale, the Society assumed four interest-free mortgages, secured by the strata title lots located at 8745 Government Street, Burnaby, B.C., for the same amount. Since these mortgages are interest-free and the total payments on the mortgages will equal the original principal amount, the Society has, in accordance with generally accepted accounting principles, recorded them as mortgages receivable at an imputed annual interest rate of 4.5%. The mortgages receivable are:

#1 #2 #3 #4

$98,000 mortgage, net of estimated interest of $29,324, due in July 2020, receivable in monthly amounts of $955 $98,000 mortgage, net of estimated interest of $26,888, due in September 2020, receivable in monthly amounts of $390

2005 $

$98,000 mortgage, net of estimated interest of $30,830, due in September 2021, receivable in monthly amounts of $310

$99,620 mortgage, net of estimated interest of $27,196, due in August 2018, receivable in monthly amounts of $590 $

10 Habitat for Humanity Annual Reportz

43,221

2004 $

52,508

57,858

59,885

60,935

61,890

56,597

61,021

218,611

$

235,304

Our Vision: A world where everyone has a safe and decent place to live.

Our Mission: To mobilize volunteers and community partners in building affordable housing and promoting homeownership as a means to breaking the cycle of poverty.

Values: Housing for all: We believe that access to safe, decent and affordable housing is a basic human right that should be available to all.

Human dignity: We believe in the worth and dignity of every human being. We respect the people we serve and those who help us in this effort and recognize them as our greatest resource.

Partnership: We believe we can best achieve our mission through meaningful and mutually beneficial partnerships with others.

Faith in action: We believe that faith is lived through action. Building on our Christian foundation, we serve and work with people of all faiths and beliefs in a spirit of justice and compassion.

Diversity and inclusivenss: We believe there is a role for everyone committed to our vision, mission and values and we seek to enrich our organization through diversity.

(From Habitat for Humanity Canada)

Habitat for Humanity Annual Report 3

Message from the Chair

In the short period of time that I have been involved with Habitat for Humanity, I have come to appreciate the spirit and the social values of those involved, past and present, in a way that no one can looking in from the outside.

In 2005, the committees working on the structures being built and on the structure of the organization did an excellent job and continue making good progress on both fronts. The staff of our organization, at both the national level and the Habitat for Humanity Greater Vancouver level, are continuing to expand their ability to make their respective operations hum.

The national board, of which I am a member, is improving its operational policies and procedures to support its efficient operations and we are following suit at the Habitat for Humanity Greater Vancouver affiliate. Our organization is coming of age across Canada and locally. To me, this is the foundation for the future. 2005 built the foundation for 2006, and progress continues.

Our ReStore operation supports our overhead. Staff, donors and volunteers make that work. Contributors of cash, goods and time make the work at our site happen. They are supported by the construction committee and staff. The selection committee educates and empowers people who need the homes we build. Everyone has a piece to add and the whole adds up to homes for people we serve. Thanks does not seem adequate but it is more than is asked.

2005 was a year of progress, thanks to all of these people. 2006 can build on that success.

Jim Lippert CRSP Chair

Message from the Executive Director

Construction of Phase 3 (units 9-12 of the 27-townhouse community) began slowly. The building schedule was delayed from January until May as the building permit process took longer than anticipated. However, once started, construction caught up quickly with the additional help of a 16-member group from the American Jewish Society for Service who came to work on the build site every weekday for a six-week period in July and August. Their incredible enthusiasm proved to be very contagious and helped boost the number of hours donated by our amazing volunteers in 2005.

The “Adopt Us for a Day” program gained recognition within the business community, and the number of corporations booking team-building days on the site increased, with many groups returning for repeat dates.

Once again, our longtime third-party supporters continued their great work: The

4 Habitat for Humanity Annual Report

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles, which include the following significant policies: Organization

The Society was incorporated under the Society Act, British Columbia for the principal purpose of building and selling homes in partnership with low-income families by means of volunteer labour and donations.

The Society is a registered charity and, as such, is exempt from income taxes.

Contributions, Grants and Donations

Grants and donations are recorded when received. Grants and donations received to fund future period expenditures are recorded as deferred revenue until that later period.

In-kind donations are recorded at the estimated fair value of the donated goods, when estimated fair value is determinable.

In-kind donations of used building materials for resale are recorded, as “ReStore revenue”, at the time when identifiable goods are sold, as there is no certainty that all items of this nature which are received as donations will be sold (Note 3).

The activities of the Society are largely conducted by unpaid volunteers. The fair value of these services is difficult to determine and therefore not included in the financial statements.

Equipment

Computers and equipment are recorded at cost and depreciated on a straight-line basis over their service lives. Trucks are recorded at cost and depreciated using the declining balance method at the annual rate of 30%.

Financial Instruments

The fair value of the Society’s financial instruments, which are cash, term deposits, accounts receivable and accounts payable, approximate their carrying values in these financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Habitat for Humanity Annual Report 9

Statement of Cash Flows Year Ended December 31, 2005 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts Cash payments for supplies and services Interest received CASH FLOWS USED FOR INVESTING ACTIVITIES Property under construction Purchase of equipment

2004

2005 $ 829,982 (500,727) 13,800 343,055 (298,728) (41,819)

$

780,225 (405,690) 11,707 386,242 (328,370) (9,134)

(340,547)

(337,504)

(68,023) 16,693 (6,377)

(15,824) 18,397 (5,776)

(DECREASE) INCREASE IN CASH

(55,199)

45,535

Cash and term deposit, End of Year

$ 198,789

CASH FLOWS FROM FINANCING ACTIVITIES Mortgage repayment Mortgage payments received Mortgage interest paid

Cash and term deposit, Beginning of Year

APPROVED BY THE BOARD

(57,707)

253,988

(3,203)

208,453

$ 253,988

Universal Gospel Choir Benefit Concert, Canada Mortgage and Housing Corporation Golf Tournament and the Roofing Contractors Association of BC silent auction all provided generous donations.

The Burnaby ReStore celebrated its third birthday in October. New customers have joined our regular and repeat customer base and revenues increased again over the same period in 2004.

As part of the worldwide Habitat family, Habitat for Humanity Greater Vancouver gave a tithe of $17,000 to Habitat Canada for use in the neediest area in the world, while an inquiry from Richmond Fire and Rescue turned into a nine-month collaboration with 24 firefighters committed to a Habitat Global Village trip to Sri Lanka in early 2006.

A special thanks to our 2005 major sponsors: MCAP and partners Invis and Genworth Financial eBay Habitat for Humanity Burnaby ReStore

Great West Life Teekay Shipping TD Canada Trust Commonwealth Insurance

As anyone who lives in the Lower Mainland knows, the lack of adequate, affordable housing is a problem that plagues individuals, families and communities throughout the area. Now, more than ever, the work done by Habitat for Humanity to build homes for low-income families in local communities is of paramount importance.

Vancouver's housing affordability deteriorated substantially, bringing the annual average for the standard detached bungalow and two-storey homes to a 10-year high. In the final quarter of 2005, a standard two-storey home in Vancouver took up 62.8 per cent of average household pre-tax income and cost an average of $435,000. British Columbia remained the least affordable province in which to own a home in Canada. (RBC Financial Group) Millerd Fuller (who founded Habitat for Humanity in 1976) wrote: “We have the knowhow in the world to house everyone. We have the resources in the world to house everyone. All that's missing is the WILL to do it.”

In Vancouver there are hundreds of companies, churches and individuals who could help make Habitat for Humanity even more successful. And as more people hear about us and join the challenge, the more positive our impact will be! But we need every person to step forward and take action.

To those who have already done so, I thank you – you have shown the way.

Anneke Rees Executive Director Phase 3 8 Habitat for Humanity Annual Report

Habitat for Humanity Annual Report 5

Statement of Net Assets December 31, 2005

AUDITORS' REPORT

To the Members of Habitat for Humanity Society of Greater Vancouver We have audited the statement of net assets of Habitat for Humanity Society of Greater Vancouver as at December 31, 2005, and the statements of revenue, expenditures and net assets and of cash flows for the year then ended. These financial statements are the responsibility of the Society's management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many organizations, the Society derives revenues from donations, membership fees and other sources, the completeness of which is not susceptible to satisfactory audit verification.

Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Society and we were not able to determine whether any adjustments might be necessary to such revenues, excess of revenue over expenditure, assets and net assets.

In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the revenues referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Society as at December 31, 2005, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

As required by the Society Act, British Columbia we report that, in our opinion, these principles have been applied on a consistent basis.

"Hay & Watson"

ASSETS Cash Term deposit Accounts receivable Prepaid expenses and deposit Property under construction (Note 2) Equipment, less accumulated depreciation of $ 39,513 (2004 - $22,322) Mortgages receivable (Note 4)

REVENUE Contributions, grants and donations ReStore sales revenue (Notes 1 and 3) ReStore yard rental Rents Interest EXPENDITURES Administration Fundraising expenses Mortgage interest ReStore operations Depreciation EXCESS OF REVENUE OVER EXPENDITURES NET ASSETS, Beginning of Year NET ASSETS, End of Year

6 Habitat for Humanity Annual Report

93,075 105,714 12,571 11,146 1,525,972

$

50,550 218,611

148,274 105,714 15,703 11,245 1,227,244 25,922 235,304

2,017,639

1,769,406

42,209 186,893

49,157 254,916

229,102

304,073

$ 1,788,537

$ 1,465,333

2005

2004

Statement of Revenues and Expenditures and Net Assets Year Ended December 31, 2005

Chartered Accountants Vancouver, B. C. June 14, 2006

$

LIABILITIES Accounts payable and accrued liabilities Mortgages payable (Note 5) NET ASSETS

2004

2005

$

243,946 565,524 12,000 5,380 13,800 840,650

$

267,611 507,777 12,000 11,707 799,095

199,250 2,982 6,377 291,646 17,191 517,446

155,695 16,628 5,776 246,966 9,504 434,569

323,204

364,526

1,465,333

$ 1,788,537

1,100,807

$ 1,465,333

Habitat for Humanity Annual Report 7

Statement of Net Assets December 31, 2005

AUDITORS' REPORT

To the Members of Habitat for Humanity Society of Greater Vancouver We have audited the statement of net assets of Habitat for Humanity Society of Greater Vancouver as at December 31, 2005, and the statements of revenue, expenditures and net assets and of cash flows for the year then ended. These financial statements are the responsibility of the Society's management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many organizations, the Society derives revenues from donations, membership fees and other sources, the completeness of which is not susceptible to satisfactory audit verification.

Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Society and we were not able to determine whether any adjustments might be necessary to such revenues, excess of revenue over expenditure, assets and net assets.

In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the revenues referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Society as at December 31, 2005, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

As required by the Society Act, British Columbia we report that, in our opinion, these principles have been applied on a consistent basis.

"Hay & Watson"

ASSETS Cash Term deposit Accounts receivable Prepaid expenses and deposit Property under construction (Note 2) Equipment, less accumulated depreciation of $ 39,513 (2004 - $22,322) Mortgages receivable (Note 4)

REVENUE Contributions, grants and donations ReStore sales revenue (Notes 1 and 3) ReStore yard rental Rents Interest EXPENDITURES Administration Fundraising expenses Mortgage interest ReStore operations Depreciation EXCESS OF REVENUE OVER EXPENDITURES NET ASSETS, Beginning of Year NET ASSETS, End of Year

6 Habitat for Humanity Annual Report

93,075 105,714 12,571 11,146 1,525,972

$

50,550 218,611

148,274 105,714 15,703 11,245 1,227,244 25,922 235,304

2,017,639

1,769,406

42,209 186,893

49,157 254,916

229,102

304,073

$ 1,788,537

$ 1,465,333

2005

2004

Statement of Revenues and Expenditures and Net Assets Year Ended December 31, 2005

Chartered Accountants Vancouver, B. C. June 14, 2006

$

LIABILITIES Accounts payable and accrued liabilities Mortgages payable (Note 5) NET ASSETS

2004

2005

$

243,946 565,524 12,000 5,380 13,800 840,650

$

267,611 507,777 12,000 11,707 799,095

199,250 2,982 6,377 291,646 17,191 517,446

155,695 16,628 5,776 246,966 9,504 434,569

323,204

364,526

1,465,333

$ 1,788,537

1,100,807

$ 1,465,333

Habitat for Humanity Annual Report 7

Statement of Cash Flows Year Ended December 31, 2005 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts Cash payments for supplies and services Interest received CASH FLOWS USED FOR INVESTING ACTIVITIES Property under construction Purchase of equipment

2004

2005 $ 829,982 (500,727) 13,800 343,055 (298,728) (41,819)

$

780,225 (405,690) 11,707 386,242 (328,370) (9,134)

(340,547)

(337,504)

(68,023) 16,693 (6,377)

(15,824) 18,397 (5,776)

(DECREASE) INCREASE IN CASH

(55,199)

45,535

Cash and term deposit, End of Year

$ 198,789

CASH FLOWS FROM FINANCING ACTIVITIES Mortgage repayment Mortgage payments received Mortgage interest paid

Cash and term deposit, Beginning of Year

APPROVED BY THE BOARD

(57,707)

253,988

(3,203)

208,453

$ 253,988

Universal Gospel Choir Benefit Concert, Canada Mortgage and Housing Corporation Golf Tournament and the Roofing Contractors Association of BC silent auction all provided generous donations.

The Burnaby ReStore celebrated its third birthday in October. New customers have joined our regular and repeat customer base and revenues increased again over the same period in 2004.

As part of the worldwide Habitat family, Habitat for Humanity Greater Vancouver gave a tithe of $17,000 to Habitat Canada for use in the neediest area in the world, while an inquiry from Richmond Fire and Rescue turned into a nine-month collaboration with 24 firefighters committed to a Habitat Global Village trip to Sri Lanka in early 2006.

A special thanks to our 2005 major sponsors: MCAP and partners Invis and Genworth Financial eBay Habitat for Humanity Burnaby ReStore

Great West Life Teekay Shipping TD Canada Trust Commonwealth Insurance

As anyone who lives in the Lower Mainland knows, the lack of adequate, affordable housing is a problem that plagues individuals, families and communities throughout the area. Now, more than ever, the work done by Habitat for Humanity to build homes for low-income families in local communities is of paramount importance.

Vancouver's housing affordability deteriorated substantially, bringing the annual average for the standard detached bungalow and two-storey homes to a 10-year high. In the final quarter of 2005, a standard two-storey home in Vancouver took up 62.8 per cent of average household pre-tax income and cost an average of $435,000. British Columbia remained the least affordable province in which to own a home in Canada. (RBC Financial Group) Millerd Fuller (who founded Habitat for Humanity in 1976) wrote: “We have the knowhow in the world to house everyone. We have the resources in the world to house everyone. All that's missing is the WILL to do it.”

In Vancouver there are hundreds of companies, churches and individuals who could help make Habitat for Humanity even more successful. And as more people hear about us and join the challenge, the more positive our impact will be! But we need every person to step forward and take action.

To those who have already done so, I thank you – you have shown the way.

Anneke Rees Executive Director Phase 3 8 Habitat for Humanity Annual Report

Habitat for Humanity Annual Report 5

Message from the Chair

In the short period of time that I have been involved with Habitat for Humanity, I have come to appreciate the spirit and the social values of those involved, past and present, in a way that no one can looking in from the outside.

In 2005, the committees working on the structures being built and on the structure of the organization did an excellent job and continue making good progress on both fronts. The staff of our organization, at both the national level and the Habitat for Humanity Greater Vancouver level, are continuing to expand their ability to make their respective operations hum.

The national board, of which I am a member, is improving its operational policies and procedures to support its efficient operations and we are following suit at the Habitat for Humanity Greater Vancouver affiliate. Our organization is coming of age across Canada and locally. To me, this is the foundation for the future. 2005 built the foundation for 2006, and progress continues.

Our ReStore operation supports our overhead. Staff, donors and volunteers make that work. Contributors of cash, goods and time make the work at our site happen. They are supported by the construction committee and staff. The selection committee educates and empowers people who need the homes we build. Everyone has a piece to add and the whole adds up to homes for people we serve. Thanks does not seem adequate but it is more than is asked.

2005 was a year of progress, thanks to all of these people. 2006 can build on that success.

Jim Lippert CRSP Chair

Message from the Executive Director

Construction of Phase 3 (units 9-12 of the 27-townhouse community) began slowly. The building schedule was delayed from January until May as the building permit process took longer than anticipated. However, once started, construction caught up quickly with the additional help of a 16-member group from the American Jewish Society for Service who came to work on the build site every weekday for a six-week period in July and August. Their incredible enthusiasm proved to be very contagious and helped boost the number of hours donated by our amazing volunteers in 2005.

The “Adopt Us for a Day” program gained recognition within the business community, and the number of corporations booking team-building days on the site increased, with many groups returning for repeat dates.

Once again, our longtime third-party supporters continued their great work: The

4 Habitat for Humanity Annual Report

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles, which include the following significant policies: Organization

The Society was incorporated under the Society Act, British Columbia for the principal purpose of building and selling homes in partnership with low-income families by means of volunteer labour and donations.

The Society is a registered charity and, as such, is exempt from income taxes.

Contributions, Grants and Donations

Grants and donations are recorded when received. Grants and donations received to fund future period expenditures are recorded as deferred revenue until that later period.

In-kind donations are recorded at the estimated fair value of the donated goods, when estimated fair value is determinable.

In-kind donations of used building materials for resale are recorded, as “ReStore revenue”, at the time when identifiable goods are sold, as there is no certainty that all items of this nature which are received as donations will be sold (Note 3).

The activities of the Society are largely conducted by unpaid volunteers. The fair value of these services is difficult to determine and therefore not included in the financial statements.

Equipment

Computers and equipment are recorded at cost and depreciated on a straight-line basis over their service lives. Trucks are recorded at cost and depreciated using the declining balance method at the annual rate of 30%.

Financial Instruments

The fair value of the Society’s financial instruments, which are cash, term deposits, accounts receivable and accounts payable, approximate their carrying values in these financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Habitat for Humanity Annual Report 9

2. PROGRAM ACTIVITIES

During 2000 the Society commenced construction of a multiple unit housing project at 8745 Government Street, Burnaby, B.C. The Society incurred design and construction costs on this project of $298,728 during the year (2004 - $328,370). The Society had purchased the land for $194,250 in 2000. The Society intends to construct a total of 27 units in this project, and completed and sold 4 units in June 2002. The Society completed construction of 4 additional units in 2005 and the sale of these units will be completed during 2006.

3. RESTORE

The Society opened ReStore, a retail outlet that accepts donation of new and used building materials and resells those goods to the public, on October 5, 2002. All proceeds from the sales through the ReStore are used to support the activities of the Society.

4. MORTGAGES RECEIVABLE

The Society sold four strata lot units during 2002 for total proceeds of $375,200. On the sale, the Society assumed four interest-free mortgages, secured by the strata title lots located at 8745 Government Street, Burnaby, B.C., for the same amount. Since these mortgages are interest-free and the total payments on the mortgages will equal the original principal amount, the Society has, in accordance with generally accepted accounting principles, recorded them as mortgages receivable at an imputed annual interest rate of 4.5%. The mortgages receivable are:

#1 #2 #3 #4

$98,000 mortgage, net of estimated interest of $29,324, due in July 2020, receivable in monthly amounts of $955 $98,000 mortgage, net of estimated interest of $26,888, due in September 2020, receivable in monthly amounts of $390

2005 $

$98,000 mortgage, net of estimated interest of $30,830, due in September 2021, receivable in monthly amounts of $310

$99,620 mortgage, net of estimated interest of $27,196, due in August 2018, receivable in monthly amounts of $590 $

10 Habitat for Humanity Annual Reportz

43,221

2004 $

52,508

57,858

59,885

60,935

61,890

56,597

61,021

218,611

$

235,304

Our Vision: A world where everyone has a safe and decent place to live.

Our Mission: To mobilize volunteers and community partners in building affordable housing and promoting homeownership as a means to breaking the cycle of poverty.

Values: Housing for all: We believe that access to safe, decent and affordable housing is a basic human right that should be available to all.

Human dignity: We believe in the worth and dignity of every human being. We respect the people we serve and those who help us in this effort and recognize them as our greatest resource.

Partnership: We believe we can best achieve our mission through meaningful and mutually beneficial partnerships with others.

Faith in action: We believe that faith is lived through action. Building on our Christian foundation, we serve and work with people of all faiths and beliefs in a spirit of justice and compassion.

Diversity and inclusivenss: We believe there is a role for everyone committed to our vision, mission and values and we seek to enrich our organization through diversity.

(From Habitat for Humanity Canada)

Habitat for Humanity Annual Report 3

Derek Hodgkinson Fraser Valley Health Authority

Jeanette Thompson Broadway Lodge

Jeffrey Monachello

Board Members Jim Lippert Retired

Grant Thornton LLP

Independent Software Professional

Pacific View Construction

Kara McNair

Kim Pettersen

Fasken, Martineau, DuMoulin LLP

Wayne Stewart Ivan Ing

Optimum Public Relations

Ernst & Young Orenda Corporate Finance Inc

VeriChip Corporation

Executive Director

COBS Bread

Michael B. Litchfield

Thomas Walsh

Nurez Khimji

Anneke Rees

Executive Director

Claudia Shaw

Office Administrator

Staff

Anneke Rees

Adrian Archambault Manager of Volunteers

Tom Riessner

ReStore Manager

5. MORTGAGES PAYABLE

A first mortgage for $194,240 was payable to the British Columbia Housing Management Commission. Interest was charged at the lender’s borrowing rate plus 1/16% (to a maximum of the Royal Bank prime rate plus 1%).

The British Columbia Housing Management Commission also provided the Society with a $150,000 second mortgage for the purposes of construction at the 8745 Government Street, Burnaby, B.C. project. The $150,000 was advanced to the Society on April 9, 2002, $50,000 of which was used to repay a promissory note. Advances under the second mortgage were interest-free for six months from the date of the first advance. Interest after that was charged at the same rate as the first mortgage.

Both mortgages were due on December 31, 2002. However, on February 28, 2003 the British Columbia Housing Management Commission confirmed its intent to renew and combine the first and second mortgages. Monthly payments on the combined mortgages are to be for interest only until such time as strata lots are sold. Principal payment of $12,750 are to be made for each strata lot sold and subsequently payments of $450 per month are to be made for each strata lot sold. The monthly payments will first be applied to interest and the balance, if any, to principal. All unpaid principal and interest is due on the combined mortgages on December 31, 2007.

The Society sold four strata lots in 2002 and has made the required payment of $51,000 to the British Columbia Housing Management Commission. Monthly mortgage payments of $1,800 have been made on the mortgage since June 1, 2002.

The Society completed another four strata lots during 2005 and has made the required payment of $51,000 in December 2005. Monthly mortgage payments of $1,800 to the British Columbia Housing Management Commission have been made since December 1, 2005.

6. IN-KIND DONATIONS

During the year ended December 31, 2005 the Society recorded in-kind contributions of $nil (2004 - $41,823), representing the fair value of donated goods donated for the Society’s construction activities.

7. CONTINGENCY

Volunteers at ReStore

The Society has granted the Province Rental Housing Corporation (“PRHC”) an option to purchase the land, and any buildings constructed to that time, at 8745 Government Street, Burnaby, B.C. PRHC has waived its right to exercise the option except if the Society fails to commence construction on the site by December 1, 2003, declares insolvency or defaults in performing the terms of an agreement with PRHC to provide affordable housing. Should PRHC become entitled to exercise its option, the purchase price will be equal to the cost of the land less stipulated amounts based on the number of months between the exercise date and December 31, 2000.

8. COMPARATIVE FIGURES

The comparative amounts have been reclassified where necessary to conform to the presentation used in the current year.

Habitat for Humanity Society of Greater Vancouver. Mailing address: PO Box 60577, Granville Park PO, Vancouver, B.C. V6H 4B9.

604-681-5618 www.vancouverhabitat.bc.ca.

2 Habitat for Humanity Annual Report

Habitat for Humanity Annual Report 11

Thanks to all our sponsors, volunteers and supporters

Designed by Orchid Designs www.orchiddesigns.net Š Habitat for Humanity, 2006

Cover photo: BAILA LAZARUS / ORCHIDDESIGNS.NET