2005 Annual Report

Thanks to all our sponsors, volunteers

and supporters

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

Cover photo: BAILA LAZARUS / ORCHIDDESIGNS.NET

Derek HodgkinsonFraser Valley Health

Authority

Jeanette ThompsonBroadway Lodge

Jeffrey MonachelloCOBS Bread

Michael B. LitchfieldFasken, Martineau,

DuMoulin LLP

Jim LippertRetired

Kara McNairIndependent Software

Professional

Kim PettersenOptimum Public

Relations

Nurez KhimjiVeriChip Corporation

Thomas WalshGrant Thornton LLP

Wayne StewartPacific View Construction

Ivan IngErnst & Young Orenda Corporate Finance Inc

Anneke ReesExecutive Director

Board Members

Staff

Tom Riessner ReStore Manager

2 Habitat for Humanity Annual Report

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.

Volunteers at ReStore

Claudia ShawOffice Administrator


Adrian ArchambaultManager of Volunteers

5. MORTGAGES PAYABLE

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

The British Columbia Housing Management Commission also provided the Society with a $150,000second 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 torepay a promissory note. Advances under the second mortgage were interest-free for six months fromthe 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 BritishColumbia Housing Management Commission confirmed its intent to renew and combine the firstand second mortgages. Monthly payments on the combined mortgages are to be for interest onlyuntil such time as strata lots are sold. Principal payment of $12,750 are to be made for each strata lotsold and subsequently payments of $450 per month are to be made for each strata lot sold. Themonthly payments will first be applied to interest and the balance, if any, to principal. All unpaidprincipal 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 BritishColumbia Housing Management Commission. Monthly mortgage payments of $1,800 have beenmade 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 HousingManagement 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 constructionactivities.

7. CONTINGENCY

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

8. COMPARATIVE FIGURES

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

Habitat for Humanity Annual Report 11

2. PROGRAM ACTIVITIES

During 2000 the Society commenced construction of a multiple unit housing project at 8745Government Street, Burnaby, B.C. The Society incurred design and construction costs on thisproject 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 com-pleted and sold 4 units in June 2002. The Society completed construction of 4 additionalunits 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 buildingmaterials and resells those goods to the public, on October 5, 2002. All proceeds from thesales 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 at8745 Government Street, Burnaby, B.C., for the same amount. Since these mortgages areinterest-free and the total payments on the mortgages will equal the original principalamount, 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 mort-gages receivable are:

2005 2004

#1 $98,000 mortgage, net of estimated interest of$29,324, due in July 2020, receivable in monthlyamounts of $955 $ 43,221 $ 52,508

#2 $98,000 mortgage, net of estimated interest of $26,888, due in September 2020, receivable in monthly amounts of $390 57,858 59,885

#3 $98,000 mortgage, net of estimated interest of $30,830, due in September 2021, receivable inmonthly amounts of $310 60,935 61,890

#4 $99,620 mortgage, net of estimated interest of $27,196, due in August 2018, receivable in monthlyamounts of $590 56,597 61,021

$ 218,611 $ 235,304

10 Habitat for Humanity Annual Reportz

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

Our Mission: To mobilize volunteers and community partners inbuilding affordable housing and promoting homeowner-ship 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 toall.

Human dignity: We believe in the worth and dignity of every humanbeing. We respect the people we serve and those whohelp us in this effort and recognize them as our greatestresource.

Partnership: We believe we can best achieve our mission throughmeaningful and mutually beneficial partnerships withothers.

Faith in action: We believe that faith is lived through action. Buildingon our Christian foundation, we serve and work withpeople of all faiths and beliefs in a spirit of justice andcompassion.

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

(From Habitat for Humanity Canada)


Message from the Chair

In the short period of time that I have been involved with Habitat for Humanity, I havecome to appreciate the spirit and the social values of those involved, past and present, ina 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 theorganization did an excellent job and continue making good progress on both fronts. Thestaff of our organization, at both the national level and the Habitat for Humanity GreaterVancouver 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 andprocedures to support its efficient operations and we are following suit at the Habitat forHumanity Greater Vancouver affiliate. Our organization is coming of age across Canadaand locally. To me, this is the foundation for the future. 2005 built the foundation for2006, and progress continues.

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

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

Jim Lippert CRSPChair

Message from the Executive Director

Construction of Phase 3 (units 9-12 of the 27-townhouse community) began slowly. Thebuilding schedule was delayed from January until May as the building permit processtook longer than anticipated. However, once started, construction caught up quicklywith the additional help of a 16-member group from the American Jewish Society forService who came to work on the build site every weekday for a six-week period in Julyand August. Their incredible enthusiasm proved to be very contagious and helped boostthe 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, withmany groups returning for repeat dates.

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


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Organization

The Society was incorporated under the Society Act, British Columbia for the principal pur-pose of building and selling homes in partnership with low-income families by means of vol-unteer 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 fundfuture 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 esti-mated fair value is determinable.

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

The activities of the Society are largely conducted by unpaid volunteers. The fair value ofthese 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 overtheir service lives. Trucks are recorded at cost and depreciated using the declining balancemethod at the annual rate of 30%.

Financial Instruments

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

Use of Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions about future events thataffect the reported amount of assets and liabilities and disclosure of contingent assets and lia-bilities at the date of the financial statements and the reported amount of revenues andexpenses during the reporting period. Actual results could differ from these estimates.


Statement of Cash FlowsYear Ended December 31, 2005

2005 2004

CASH FLOWS FROM OPERATING ACTIVITIESCash receipts $ 829,982 $ 780,225Cash payments for supplies and services (500,727) (405,690)Interest received 13,800 11,707

343,055 386,242

CASH FLOWS USED FOR INVESTING ACTIVITIESProperty under construction (298,728) (328,370)Purchase of equipment (41,819) (9,134)

(340,547) (337,504)

CASH FLOWS FROM FINANCING ACTIVITIESMortgage repayment (68,023) (15,824)Mortgage payments received 16,693 18,397Mortgage interest paid (6,377) (5,776)

(57,707) (3,203)

(DECREASE) INCREASE IN CASH (55,199) 45,535

Cash and term deposit, Beginning of Year 253,988 208,453

Cash and term deposit, End of Year $ 198,789 $ 253,988

APPROVED BY THE BOARD


Phase 3

Universal Gospel Choir Benefit Concert, Canada Mortgage and Housing Corporation GolfTournament 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 joinedour regular and repeat customer base and revenues increased again over the same periodin 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 aninquiry from Richmond Fire and Rescue turned into a nine-month collaboration with 24firefighters committed to a Habitat Global Village trip to Sri Lanka in early 2006.

A special thanks to our 2005 major sponsors:

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 thearea. Now, more than ever, the work done by Habitat for Humanity to build homes forlow-income families in local communities is of paramount importance.

Vancouver's housing affordability deteriorated substantially, bringing the annual averagefor the standard detached bungalow and two-storey homes to a 10-year high. In the finalquarter of 2005, a standard two-storey home in Vancouver took up 62.8 per cent of averagehousehold pre-tax income and cost an average of $435,000. British Columbia remained theleast 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 know-how in the world to house everyone. We have the resources in the world to house every-one. All that's missing is the WILL to do it.”

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

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



MCAP and partnersInvis and Genworth Financial

eBayHabitat for Humanity Burnaby ReStore

Great West LifeTeekay ShippingTD Canada TrustCommonwealth Insurance

AUDITORS' REPORT

To the Members ofHabitat for Humanity Society of Greater Vancouver

We have audited the statement of net assets of Habitat for Humanity Society of Greater Vancouver asat December 31, 2005, and the statements of revenue, expenditures and net assets and of cash flowsfor the year then ended. These financial statements are the responsibility of the Society's manage-ment. 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 Canadiangenerally accepted auditing standards. Those standards require that we plan and perform an audit toobtain reasonable assurance whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation.

In common with many organizations, the Society derives revenues from donations, membership feesand 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 ofthe Society and we were not able to determine whether any adjustments might be necessary to suchrevenues, 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 benecessary had we been able to satisfy ourselves concerning the completeness of the revenues referredto in the preceding paragraph, these financial statements present fairly, in all material respects, thefinancial position of the Society as at December 31, 2005, and the results of its operations and its cashflows 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 havebeen applied on a consistent basis.

"Hay & Watson"

Chartered Accountants

Vancouver, B. C.June 14, 2006


Statement of Net AssetsDecember 31, 2005

2005 2004

ASSETSCash $ 93,075 $ 148,274Term deposit 105,714 105,714Accounts receivable 12,571 15,703Prepaid expenses and deposit 11,146 11,245Property under construction (Note 2) 1,525,972 1,227,244Equipment, less accumulated depreciation of

$ 39,513 (2004 - $22,322) 50,550 25,922Mortgages receivable (Note 4) 218,611 235,304

2,017,639 1,769,406

LIABILITIESAccounts payable and accrued liabilities 42,209 49,157Mortgages payable (Note 5) 186,893 254,916

229,102 304,073

NET ASSETS $ 1,788,537 $ 1,465,333

Statement of Revenues and Expenditures and Net AssetsYear Ended December 31, 2005

2005 2004REVENUE

Contributions, grants and donations $ 243,946 $ 267,611ReStore sales revenue (Notes 1 and 3) 565,524 507,777ReStore yard rental 12,000 12,000Rents 5,380 -Interest 13,800 11,707

840,650 799,095

EXPENDITURESAdministration 199,250 155,695Fundraising expenses 2,982 16,628Mortgage interest 6,377 5,776ReStore operations 291,646 246,966Depreciation 17,191 9,504

517,446 434,569

EXCESS OF REVENUE OVER EXPENDITURES 323,204 364,526

NET ASSETS, Beginning of Year 1,465,333 1,100,807

NET ASSETS, End of Year $ 1,788,537 $ 1,465,333


AUDITORS' REPORT

To the Members ofHabitat for Humanity Society of Greater Vancouver

We have audited the statement of net assets of Habitat for Humanity Society of Greater Vancouver asat December 31, 2005, and the statements of revenue, expenditures and net assets and of cash flowsfor the year then ended. These financial statements are the responsibility of the Society's manage-ment. 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 Canadiangenerally accepted auditing standards. Those standards require that we plan and perform an audit toobtain reasonable assurance whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation.

In common with many organizations, the Society derives revenues from donations, membership feesand 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 ofthe Society and we were not able to determine whether any adjustments might be necessary to suchrevenues, 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 benecessary had we been able to satisfy ourselves concerning the completeness of the revenues referredto in the preceding paragraph, these financial statements present fairly, in all material respects, thefinancial position of the Society as at December 31, 2005, and the results of its operations and its cashflows 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 havebeen applied on a consistent basis.

"Hay & Watson"

Chartered Accountants

Vancouver, B. C.June 14, 2006


Statement of Net AssetsDecember 31, 2005

2005 2004

ASSETSCash $ 93,075 $ 148,274Term deposit 105,714 105,714Accounts receivable 12,571 15,703Prepaid expenses and deposit 11,146 11,245Property under construction (Note 2) 1,525,972 1,227,244Equipment, less accumulated depreciation of

$ 39,513 (2004 - $22,322) 50,550 25,922Mortgages receivable (Note 4) 218,611 235,304

2,017,639 1,769,406

LIABILITIESAccounts payable and accrued liabilities 42,209 49,157Mortgages payable (Note 5) 186,893 254,916

229,102 304,073

NET ASSETS $ 1,788,537 $ 1,465,333

Statement of Revenues and Expenditures and Net AssetsYear Ended December 31, 2005

2005 2004REVENUE

Contributions, grants and donations $ 243,946 $ 267,611ReStore sales revenue (Notes 1 and 3) 565,524 507,777ReStore yard rental 12,000 12,000Rents 5,380 -Interest 13,800 11,707

840,650 799,095

EXPENDITURESAdministration 199,250 155,695Fundraising expenses 2,982 16,628Mortgage interest 6,377 5,776ReStore operations 291,646 246,966Depreciation 17,191 9,504

517,446 434,569

EXCESS OF REVENUE OVER EXPENDITURES 323,204 364,526

NET ASSETS, Beginning of Year 1,465,333 1,100,807

NET ASSETS, End of Year $ 1,788,537 $ 1,465,333


Statement of Cash FlowsYear Ended December 31, 2005

2005 2004

CASH FLOWS FROM OPERATING ACTIVITIESCash receipts $ 829,982 $ 780,225Cash payments for supplies and services (500,727) (405,690)Interest received 13,800 11,707

343,055 386,242

CASH FLOWS USED FOR INVESTING ACTIVITIESProperty under construction (298,728) (328,370)Purchase of equipment (41,819) (9,134)

(340,547) (337,504)

CASH FLOWS FROM FINANCING ACTIVITIESMortgage repayment (68,023) (15,824)Mortgage payments received 16,693 18,397Mortgage interest paid (6,377) (5,776)

(57,707) (3,203)

(DECREASE) INCREASE IN CASH (55,199) 45,535

Cash and term deposit, Beginning of Year 253,988 208,453

Cash and term deposit, End of Year $ 198,789 $ 253,988

APPROVED BY THE BOARD


Phase 3

Universal Gospel Choir Benefit Concert, Canada Mortgage and Housing Corporation GolfTournament 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 joinedour regular and repeat customer base and revenues increased again over the same periodin 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 aninquiry from Richmond Fire and Rescue turned into a nine-month collaboration with 24firefighters committed to a Habitat Global Village trip to Sri Lanka in early 2006.

A special thanks to our 2005 major sponsors:

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 thearea. Now, more than ever, the work done by Habitat for Humanity to build homes forlow-income families in local communities is of paramount importance.

Vancouver's housing affordability deteriorated substantially, bringing the annual averagefor the standard detached bungalow and two-storey homes to a 10-year high. In the finalquarter of 2005, a standard two-storey home in Vancouver took up 62.8 per cent of averagehousehold pre-tax income and cost an average of $435,000. British Columbia remained theleast 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 know-how in the world to house everyone. We have the resources in the world to house every-one. All that's missing is the WILL to do it.”

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

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



MCAP and partnersInvis and Genworth Financial

eBayHabitat for Humanity Burnaby ReStore

Great West LifeTeekay ShippingTD Canada TrustCommonwealth Insurance

Message from the Chair

In the short period of time that I have been involved with Habitat for Humanity, I havecome to appreciate the spirit and the social values of those involved, past and present, ina 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 theorganization did an excellent job and continue making good progress on both fronts. Thestaff of our organization, at both the national level and the Habitat for Humanity GreaterVancouver 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 andprocedures to support its efficient operations and we are following suit at the Habitat forHumanity Greater Vancouver affiliate. Our organization is coming of age across Canadaand locally. To me, this is the foundation for the future. 2005 built the foundation for2006, and progress continues.

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

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

Jim Lippert CRSPChair

Message from the Executive Director

Construction of Phase 3 (units 9-12 of the 27-townhouse community) began slowly. Thebuilding schedule was delayed from January until May as the building permit processtook longer than anticipated. However, once started, construction caught up quicklywith the additional help of a 16-member group from the American Jewish Society forService who came to work on the build site every weekday for a six-week period in Julyand August. Their incredible enthusiasm proved to be very contagious and helped boostthe 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, withmany groups returning for repeat dates.

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


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Organization

The Society was incorporated under the Society Act, British Columbia for the principal pur-pose of building and selling homes in partnership with low-income families by means of vol-unteer 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 fundfuture 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 esti-mated fair value is determinable.

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

The activities of the Society are largely conducted by unpaid volunteers. The fair value ofthese 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 overtheir service lives. Trucks are recorded at cost and depreciated using the declining balancemethod at the annual rate of 30%.

Financial Instruments

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

Use of Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions about future events thataffect the reported amount of assets and liabilities and disclosure of contingent assets and lia-bilities at the date of the financial statements and the reported amount of revenues andexpenses during the reporting period. Actual results could differ from these estimates.


2. PROGRAM ACTIVITIES

During 2000 the Society commenced construction of a multiple unit housing project at 8745Government Street, Burnaby, B.C. The Society incurred design and construction costs on thisproject 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 com-pleted and sold 4 units in June 2002. The Society completed construction of 4 additionalunits 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 buildingmaterials and resells those goods to the public, on October 5, 2002. All proceeds from thesales 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 at8745 Government Street, Burnaby, B.C., for the same amount. Since these mortgages areinterest-free and the total payments on the mortgages will equal the original principalamount, 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 mort-gages receivable are:

2005 2004

#1 $98,000 mortgage, net of estimated interest of$29,324, due in July 2020, receivable in monthlyamounts of $955 $ 43,221 $ 52,508

#2 $98,000 mortgage, net of estimated interest of $26,888, due in September 2020, receivable in monthly amounts of $390 57,858 59,885

#3 $98,000 mortgage, net of estimated interest of $30,830, due in September 2021, receivable inmonthly amounts of $310 60,935 61,890

#4 $99,620 mortgage, net of estimated interest of $27,196, due in August 2018, receivable in monthlyamounts of $590 56,597 61,021

$ 218,611 $ 235,304

10 Habitat for Humanity Annual Reportz

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

Our Mission: To mobilize volunteers and community partners inbuilding affordable housing and promoting homeowner-ship 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 toall.

Human dignity: We believe in the worth and dignity of every humanbeing. We respect the people we serve and those whohelp us in this effort and recognize them as our greatestresource.

Partnership: We believe we can best achieve our mission throughmeaningful and mutually beneficial partnerships withothers.

Faith in action: We believe that faith is lived through action. Buildingon our Christian foundation, we serve and work withpeople of all faiths and beliefs in a spirit of justice andcompassion.

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

(From Habitat for Humanity Canada)


Derek HodgkinsonFraser Valley Health

Authority

Jeanette ThompsonBroadway Lodge

Jeffrey MonachelloCOBS Bread

Michael B. LitchfieldFasken, Martineau,

DuMoulin LLP

Jim LippertRetired

Kara McNairIndependent Software

Professional

Kim PettersenOptimum Public

Relations

Nurez KhimjiVeriChip Corporation

Thomas WalshGrant Thornton LLP

Wayne StewartPacific View Construction

Ivan IngErnst & Young Orenda Corporate Finance Inc


Board Members

Staff

Tom Riessner ReStore Manager


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.

Volunteers at ReStore

Claudia ShawOffice Administrator


Adrian ArchambaultManager of Volunteers

5. MORTGAGES PAYABLE

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

The British Columbia Housing Management Commission also provided the Society with a $150,000second 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 torepay a promissory note. Advances under the second mortgage were interest-free for six months fromthe 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 BritishColumbia Housing Management Commission confirmed its intent to renew and combine the firstand second mortgages. Monthly payments on the combined mortgages are to be for interest onlyuntil such time as strata lots are sold. Principal payment of $12,750 are to be made for each strata lotsold and subsequently payments of $450 per month are to be made for each strata lot sold. Themonthly payments will first be applied to interest and the balance, if any, to principal. All unpaidprincipal 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 BritishColumbia Housing Management Commission. Monthly mortgage payments of $1,800 have beenmade 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 HousingManagement 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 constructionactivities.

7. CONTINGENCY

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

8. COMPARATIVE FIGURES

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


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Documents

2005 Annual Report