The Home Depot Foundation will give a $30 million donation to Habitat for Humanity International to build more sustainable, energy-efficient and affordable homes.

It is the first time that Atlanta-based Home Depot has entered into a formal national partnership with Atlanta-based Habitat International, even though the home improvement chain has been working with Habitat affiliates for years. It's also one of the largest philanthropic gifts in Home Depot's history, and one of the largest corporate sponsorships ever for Habitat.

The "Partners in Sustainable Building" money will be used for at least 5,000 homes built by Habitat affiliates over the next five years, roughly about 17 percent of all the single- and multi-family homes Habitat will build.

"Home Depot's core business is such a natural fit with us," said Jonathan Reckford, CEO of Habitat for Humanity International. "This will reduce the long-term cost for our homeowners. This will keep energy-efficient homes more affordable on the front-end and even more affordable throughout the life of the homes."

The $30 million partnership, which will include some in-kind contribution of supplies and products, combines two of Home Depot Foundation's initiatives — affordable housing and environmentally sustainable development.

"There's great symmetry in what we do," said Frank Blake, Home Depot's CEO since January 2007.

Kelly Caffarelli, president of the Home Depot Foundation, said conversations about the partnership began in 2006. The partnership will begin with a one-year pilot program with 30 Habitat affiliates across the country. Initially, much of the effort will go toward training Habitat affiliates about green building and energy-efficient homes. Then, Home Depot will provide grants for making the homes sustainable.

"We are most interested in pocketbook issues — energy conservation, water conservation, good indoor air quality and durable materials," Caffarelli said. "That includes having more insulation and higher quality windows and doors."

Several years ago, Home Depot was identified as a company lacking in philanthropic contributions, both nationally and locally. A 2005 examination by The Atlanta Journal-Constitution showed that, as a percentage of revenue, Home Depot's overall donations were smaller than other big Atlanta companies. Since Blake has been CEO, the company has redefined and increased its philanthropic efforts. The philanthropic boost has happened as Home Depot has suffered the effects of the struggling housing market. It experienced its first-ever decline in annual sales in 2007.

"These are tough times for our company, but these are also tough times for folks who are going to live in these homes," Blake said. "We are trying, even in these difficult times, to invest in our associates and in our communities."

Blake is married to Liz Blake, who is Habitat for Humanity International senior vice president of government affairs, advocacy and legal.

For that reason, Blake said, he did not participate in negotiations with Habitat. His wife also recused herself.

Another issue: Lowe's, Home Depot's main rival, has had a 12-year relationship with Habitat, primarily supporting its Habitat for Humanity Women Build Program. According to Lowe's Web site, the company has donated nearly $20 million over the past four years.

"I had two concerns on this," Blake said. "The first, obviously being my spouse. The second thing was that this not be viewed as a competitive issue. I actually called Robert Niblock [Lowe's CEO] and said, 'This is something we are considering. If it's an issue for Lowe's, let me know.' He did exactly the right thing, saying it was for charity."

Caffarelli said there is a deficit of 5 million affordable homes in the country. "There's plenty of work to go around," she said. "There's no reason to be competitive about it."

Reckford said Habitat needs many corporate partners to help fill the gap of building affordable homes.

"We have such a huge need out there, we want everyone engaged," Reckford said. "We think it's wonderful when competitors out there put families first."