Hmm. Looking at Habitat for Humanity’s website and the Wikipedia article, it’s not as bad as I thought: they’re basically selling cheaper houses, rather than giving away free ones. And they say that they do not require volunteers to be Christian. But they do talk about putting Christian principles into action and the “theology of the hammer”.
Recipients of houses must put in a lot of their own work into the houses; they are evaluated for ability to pay a mortgage as well. The local ‘affiliate’ organisation select which families will receive houses. Perhaps I mis-heard an echo of how one affiliate selected families.
It sounds like a good idea, but executed very conservatively.