U.S.
      SECURITIES AND EXCHANGE COMMISSION


Washington,
      D.C. 20549










FORM
      10-QSB










**[X]**
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934
                for the period ended June 30,
                2005**





**[
                ]**
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934
                for the transition period from _______ to**




**Commission
      File No. 000-50701**





HOUSERAISING,
      INC.


(Exact
      name of small business issuer as specified in its charter)





**TECHNOLOGY
      CONNECTIONS, INC.**


(Former
      name of registrant)




North
      Carolina56-2253025


(State or other jurisdiction of(IRS
      Employer identification No.)


**incorporation
      or
      organization)**





**4801
      East Independence Blvd., Suite 201, Charlotte, North Carolina
      28212**


**(Address
      of principal executive offices)**





**(704)
      532-2121**


**(Issuer's
      telephone number)**





**Securities
      registered under Section 12(b) of the Act:**





**NONE**





**Securities
      registered under Section 12(g) of the Act:**





**Common
      stock (par value $.001 per share)**




Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes [x] No [ ]





**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





State
      the
      number of shares outstanding of each of the issuers’ classes of common equity,
      as of the latest practicable date:





Class
      of Stock         Outstanding
      July 31, 2005


Common
      Stock ($.001 par
      value) 40,823,091


Class
      A
      Convertible Preferred Stock ($.001 par
      value) 1,000,000











*Table
          of Contents*





REPORTS
      TO SECURITY HOLDERS





We
      are a
      reporting company under the requirements of the Securities Exchange Act of
      1934
      and will file quarterly, annual and other reports with the Securities and
      Exchange Commission. This quarterly report contains the required unaudited
      financial statements. We are not required to deliver a quarterly report to
      security holders and will not voluntarily deliver a copy of the quarterly report
      to security holders. The reports and other information filed by us will be
      available for inspection and copying at the public reference facilities of
      the
      Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.





Copies
      of
      such material may be obtained by mail from the Public Reference Section of
      the
      Commission at 450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed
      rates. Information on the operation of the Public Reference Room may be obtained
      by calling the SEC at 1-800-SEC-0330. In addition, the Commission maintains
      a
      World Wide Website on the Internet at http://www.sec.gov that contains reports,
      proxy and information statements and other information regarding registrants
      that file electronically with the Commission.


























The
      rest of this page is left intentionally blank














2


HOUSERAISING,
            INC.
 FORM
            10-QSB
 
 For
            the
            Quarter ended June 30, 2005
 
 TABLE
            OF CONTENTS
  PageCautionary
                      Statement and Risk Factors that May Affect Future Results
                  4PART
                      IITEM
                      1.  Selected Financial Statements
                  5Balance Sheet - June 30, 2005 (unaudited)
                  5Statements of Operations - Three Months and Six
                      Months Ended June 30, 2005 and 2004
                      (unaudited)
                  6Statements of Cash Flows - Six Months
                      Ended June
                      30, 2005 and 2004 (unaudited)
                  8Notes to Financial Statements (unaudited)
                  9ITEM
                      2.  Management’s Discussion and Analysis of Financial
                      Condition and Plan of Operations
                  14ITEM
                      3.  Controls and Procedures
                  21PART
                      IIITEM
                      1.  Legal Proceedings
                  22ITEM
                      2.  Changes in Securities
                  22ITEM
                      3.  Default Upon Senior Securities
                  22ITEM
                      4.  Submission of Matters to a Vote of Security
                      Holders
                  23ITEM
                      5.  Other Information
                  23ITEM
                      6.  Exhibits and Reports on Form
                      8-K
                  25Signatures
                  26


3
 *Table
          of Contents*


**Cautionary
      Statement and Risk Factors that May Affect Future Results**





This
      report and other presentations made by HouseRaising, Inc. (“HRI” or “Company”)
      and its subsidiaries contain “forward-looking statements,” which include
      statements that are predictive in nature, depend upon or refer to future events
      or conditions, and usually include words such as
“expects,”“anticipates,”“intends,”“plans,”“believes,”“will,”“predicts,”“estimates,”“we
      believe,”“the Company believes,”“management believes” or similar expressions. In
      addition, any statements concerning future financial performance (including
      future revenues, expenses, earnings or losses or growth rates), ongoing business
      strategies or prospects and possible future actions are also forward-looking
      statements. Forward-looking statements are based on current expectations and
      projections about future events and are subject to risks, uncertainties and
      the
      accuracy of assumptions concerning HRI and its subsidiaries, the performance
      of
      the industries in which it does business and economic and market factors, among
      other things. **These
      forward-looking statements are not guarantees of future
      performance.**





Risks,
      uncertainties and other important factors that could cause actual results to
      differ materially from those in forward-looking statements and from historical
      results include, but are not limited to, the following:





·
            Changes
                in general and local economic and market conditions where our operations
                are conducted and where prospective purchasers of homes
                live;


·
            the
                effects of weather, natural disasters or global developments, including
                terrorist acts and war on terrorism negatively affecting local home
                building industry and adversely affecting new home installations
                market;


·
            the
                timing and extent of changes in interest
                rates;


·
            negative
                trends in residential homebuilding adversely affecting our
                business;


·
            actions
                by competitors that negatively affect us—the homebuilding market is
                extremely competitive, characterized by competition from a number
                of home
                builders in each market in which we operate, and there are few barriers
                to
                entry;


·
            no
                assurance that the Company will be able to recruit quality homebuilders
                and personnel in order to meet the goals set forth in its business
                plan
                and rollout of Zone operations;


·
            no
                assurance that anticipated acquisitions will materialize and/or be
                successfully integrated into
                operations;


·
            the
                risks of suffering losses that are uninsured—construction defect and home
                warranty claims arising in the ordinary course of business are common
                in
                the homebuilding industry and can be costly; if we are not able to
                obtain
                adequate insurance against these claims, we may experience losses
                that
                could hurt our business;


·
            the
                effects of changes in accounting principles applicable to HRI and
                its
                subsidiaries;


·
            given
                the prominence of the automated design/build system in HRI’s operations
                and business plan, there is a risk that the Company may not complete
                the
                automated design/build system or generate significant retail sales
                in the
                future;


·
            while
                the company has filed a patent registration to protect its intellectual
                property, until patent pending has been issued, HRI’s technology and
                software are at risk of being copied by
                competitors;


·
            HRI’s
                success is heavily dependent upon the continued active participation
                of
                its President, Robert V. McLemore;


·
            our
                common stock trades on the over-the-counter market and is subject
                to high
                volatility; future sales of common stock could adversely affect the
                stock
                price;


·
            HRI
                provides S-8 shares as compensation for services rendered which could
                impact stock volatility and future issuance;


·
            principal
                stockholders control business affairs which means investors will
                have
                little or no participation in
                business;


·
            the
                risk that an investor in the Company will never see a return on investment
                and the stock may become worthless;


·
            the
                risk that the Company will be unable to obtain needed capital or
                unable to
                establish credit arrangements or extend existing arrangements on
                satisfactory terms, which would require it to curtail
                operations;


·
            to
                the extent additional capital is raised through the sale of equity
                and/or
                convertible debt securities, this could result in dilution to shareholders
                and/or increased debt service;


·
            we
                have never paid dividends and do not intend to pay dividends for
                the
                foreseeable future given need to retain earnings to finance the
                development and expansion of the
                business;


·
            federal
                and state governmental and regulatory actions, such as changes in
                laws,
                rules and regulations applicable to HRI and its subsidiaries (including
                changes in taxation, environmental laws and regulations, occupational
                safety and health acts, workmen’s compensation statutes, unemployment
                insurance and governmental fees and
                assessments);


·
            HRI
                is a development stage company that has an independent auditor’s report
                for fiscal 2004 that raises substantial doubt about its ability to
                continue as a going concern;


·
            other
                risks or uncertainties described elsewhere in this report and in
                other
                periodic reports previously and subsequently filed by HRI or its
                predecessor company with the Securities and Exchange Commission
                (SEC).





Forward-looking
      statements speak only as of the date of the report, presentation or filing
      in
      which they are made. Except to the extent required by the federal securities
      laws, HRI and its subsidiaries undertake no obligation to publicly update or
      revise any forward-looking statements, whether as a result of new information,
      future events or otherwise.




4
 *Table
          of Contents*





**PART
      I**





**ITEM
      1. SELECTED FINANCIAL STATEMENTS**




**HouseRaising,
                Inc. and Subsidiaries (A Development Stage
                Company)****Consolidated
                Condensed Balance Sheet (unaudited)****As
                of June 30, 2005****ASSETS**CURRENT
                ASSETSCash
                and Cash Equivalents
            
            $
            19,901Prepaids
            
            
            324,417Accounts
                Receivable
            
            
            25,941Excess
                costs over billings on uncompleted projects
            
            
            (44,867
            )TOTAL
                CURRENT ASSETS
            
            
            325,392PROPERTY
                AND EQUIPMENTProperty
                and Equipment
            
            
            190,474Accumulated
                Depreciation
            
            
            (104,499
            )Net
                Property and Equipment
            
            
            85,975OTHER
                ASSETOther
                Assets
            
            
            26,853Capitalized
                Software
            
            
            9,185,556Net
                Other Assets
            
            
            9,212,409TOTAL
                ASSETS
            
            $
            9,623,776**LIABILITIES
                AND STOCKHOLDERS' EQUITY**LIABILITIESCurrent
                Liabilities:Accounts
                Payable and Accrued Expenses
            
            $
            447,221Interest
                Payable
            
            
            35,833Notes
                Payable
            
            
            1,060,313TOTAL
                LIABILITIES
            
            
            1,543,367STOCKHOLDERS'
                EQUITYPreferred
                Stock ($.001 par value, 5,000,000 authorized:none
                issued and outstanding)Preferred
                Stock Class A Convertible ($.001 par value, 5,000,000
                authorized:
            
            
            1,0001,000,000
                issued and outstanding)
            
            
            -Common
                Stock ($.001 par value, 90,000,000 shares authorized:
            
            
            -40,823,091
                shares issued and outstanding)
            
            
            40,165Common
                Stock Subscribed but not Issued
            
            
            1,831,413Additional
                Paid-in-Capital
            
            
            10,472,963Retained
                Deficit
            
            
            (4,265,132
            )TOTAL
                STOCKHOLDERS' EQUITY
            
            
            8,080,409TOTAL
                LIABILITIES AND STOCKHOLDERS' EQUITY
            
            $
            9,623,776






The
      accompanying notes are an integral part of these consolidated financial
      statements.


5
 *Table
            of Contents*


**HouseRaising,
                Inc. and Subsidiaries (A Development Stage
                Company)**Consolidated
                Statement of Operations (unaudited)For
                the three months ended June 30, 2005 and 20042005
            
            2004(a)SALES
                AND COST OF SALES:Sales
            
            $
            0
            
            $
            0Cost
                of sales
            
            
            0
            
            
            0Gross
                Profit
            
            
            0
            
            
            0OTHER
                REVENUES:Sales
                and service fees
            
            
            0
            
            
            (40,739
            )Other
                income
            
            
            47
            
            
            0NET
                REVENUES
            
            
            47
            
            
            (40,739
            )OPERATING
                EXPENSES:Selling,
                general and administrative
            
            
            410,838
            
            
            1,266Consulting
                fees
            
            
            1,149,180
            
            
            183,2911,560,018
            
            
            184,557OTHER
                EXPENSE:Interest
                expense
            
            
            16,526
            
            
            43,344NET
                LOSS
            
            $
            (1,576,497
            )
            $
            (268,640
            )Net
                Loss Per Common ShareBasic
                & Fully Diluted
            
            $
            *
            
            
            *Weighted
                Average CommonShares
                Outstanding
            
            
            39,177,964
            
            
            17,253,050(b
            )*
                =
                Less than ($.01)(a)
                = Consolidated HouseRaising, Inc. and Technology Connections,
                Inc.(b)
                = Reflects solely HouseRaising, Inc. shares







The
      accompanying notes are an integral part of these consolidated financial
      statements.






6
 *Table
          of Contents*





**HouseRaising,
                Inc. and Subsidiaries (A Development Stage
                Company)**Consolidated
                Statement of Operations (unaudited)For
                the six months ended June 30, 2005 and 20042005
            
            2004(a)SALES
                AND COST OF SALES:Sales
            
            $
            1,590
            
            $
            39,026Cost
                of sales
            
            
            1,248
            
            
            28,471Gross
                Profit
            
            
            342
            
            
            10,555OTHER
                REVENUES:Sales
                and service fees
            
            
            8,462
            
            
            24,523Other
                income
            
            
            141
            
            
            6,150NET
                REVENUES
            
            
            8,945
            
            
            41,228OPERATING
                EXPENSES:Selling,
                general and administrative
            
            
            877,953
            
            
            106,171Consulting
                fees
            
            
            1,662,529
            
            
            336,2922,540,482
            
            
            442,463OTHER
                EXPENSE:Interest
                expense
            
            
            25,773
            
            
            46,137NET
                LOSS
            
            $
            (2,557,310
            )
            $
            (447,372
            )Net
                Loss Per Common ShareBasic
                & Fully Diluted
            
            $
            *
            
            
            *Weighted
                Average CommonShares
                Outstanding
            
            
            38,163,871
            
            
            17,253,050(b
            )*
                =
                Less than ($.01)(a)
                = Consolidated HouseRaising, Inc. and Technology Connections,
                Inc.(b)
                = Reflects solely HouseRaising, Inc. shares







The
      accompanying notes are an integral part of these consolidated financial
      statements.







7
 *Table
          of Contents*








**HouseRaising,
                Inc. and Subsidiaries (A Development Stage
                Company)****Statements
                of Cash Flows (unaudited)****For
                the six months ended June 30, 2005 and 2004**2005
            
            2004(c)CASH
                FLOWS FROM OPERATING ACTIVITIES:Net
                loss
            
            $
            (2,557,310
            )
            $
            (447,372
            )Adjustments
                to reconcile net loss to netcash
                (used in) operating activities:Depreciation
            
            
            15,116
            
            
            13,697Common
                stock subscribed for services rendered
            
            
            2,607,552
            
            
            342,617(Increase)
                decrease in operating assets:
            
            
            --
            
            
            --Accounts
                receivable
            
            
            
            
            
            4,767Capitalized
                software
            
            
            (614,317
            )
            
            (425,953
            )Excess
                of costs over billings on uncompleted contracts
            
            
            104,510
            
            
            (3,000
            )Accounts
                payable and accrued expenses
            
            
            156,069
            
            
            342,803NET
                CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
            
            
            (288,380
            )
            
            (172,441
            )CASH
                FLOWS FROM INVESTMENT ACTIVITIES:Investment
                in subsidiary operations
            
            
            (25,000
            )
            
            --Purchase
                of property and equipment
            
            
            (15,042
            )
            
            (24,468
            )NET
                CASH (USED IN) INVESTMENT ACTIVITIES
            
            
            (40,042
            )
            
            (24,468
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Decrease
                in excess of outstanding checks
            
            
            -
            
            
            (16,295
            )Proceeds
                for sale of common stock
            
            
            -
            
            
            41,200Borrowings
                on notes payable
            
            
            323,556
            
            
            178,141NET
                CASH PROVIDED BY FINANCING ACTIVITIES
            
            
            323,556
            
            
            203,046NET
                INCREASE IN CASH ANDCASH
                EQUIVALENTS
            
            
            (4,866
            )
            
            6,137CASH
                AND CASH EQUIVALENTS:Beginning
                of period
            
            
            24,767
            
            
            382End
                of period
            
            $
            19,901
            
            $
            6,519(c)
                - Consolidated HouseRaising, Inc. and Technology Connections,
                Inc.







The
      accompanying notes are an integral part of these consolidated financial
      statements.


8
 *Table
              of Contents*


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(Unaudited)**





**(1)
      Basis of presentation**





The
      accompanying unaudited consolidated financial statements have been prepared
      in
      conformity with Generally Accepted Accounting Principles (“GAAP”) for interim
      financial information and with the instructions to SEC Form 10-QSB and Article
      10 of Regulation S-X. Accordingly, they do not include all of the information
      and footnotes required by GAAP for complete financial statements. In preparing
      the financial statements, management is required to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosure of contingent assets and liabilities at the date of the balance
      sheet
      and the reported amounts of revenues and expenses for the period. Actual results
      could differ significantly from those estimates. The accompanying unaudited
      consolidated financial statements should be read in conjunction with the audited
      consolidated financial statements and the notes thereto incorporated by
      reference in HRI’s Annual Report on SEC Form 10-KSB for the year ended December
      31, 2004.





In
      the
      opinion of HRI’s management, the accompanying unaudited consolidated financial
      statements contain all material adjustments required by GAAP to present fairly
      the financial position of HRI and its subsidiaries as of June 30, 2005 and
      the
      results of their operations for the three and six months ended June 30, 2005
      and
      2004 and their cash flows for the six months ended June 30, 2005 and 2004.
      All
      such adjustments are of a normal recurring nature, unless otherwise disclosed
      in
      this Form 10-QSB or other referenced material. Results of operations
      for
      interim periods are not necessarily indicative of results for the full year.





When
      required, certain reclassifications are made to the prior period’s consolidated
      financial statements to conform to the current presentation.





**(2)
      Summary of Significant Accounting Policies**





Business
      Activity —HouseRaising,
      Inc. (a Development Stage Company) and Subsidiaries are in the business of
      selling, designing and managing design/build and renovation projects and home
      building solutions in the residential homebuilding market for homebuyers and
      homebuilders. HouseRaising, Inc. merged into Technology Connections, Inc. and
      changed the name to HouseRaising, Inc. (The Company).





Cash
      and Cash Equivalents —For
      purposes of the Consolidated Statement of Cash Flows, the Company considers
      liquid investments with an original maturity of three months or less to be
      cash
      equivalents.





Management’s
      Use of Estimates —The
      preparation of consolidated financial statements in conformity with GAAP
      requires management to make estimates and assumptions that affect the reported
      amounts of assets and liabilities and disclosures of contingent assets and
      liabilities at the date of consolidated financial statements and the reported
      amounts of revenues and expenses during the reporting period. Actual results
      could differ from those estimates.





Revenue
      Recognition —The
      Company’s revenue is derived primarily from 1) providing general management of
      construction for new homes and renovation projects which reflect the home’s
      contract price, and 2) design and build management services (sales and service
      fee) to homebuilders and homebuyers on a percentage of such home’s contract
      price. In no event would the company record more than the home’s contract price
      for consolidation purposes in the event the company provides both general
      management and design/build services to the same project. Approximately 60%
      of
      the sales and service fee (which is typically 10% of the home’s contract price)
      is recognized in the initial construction stage. The balance of the Company’s
      management fee, approximately 40% of the sales and service fee is recognized
      at
      closing. Revenues and profits from general management of construction contracts
      are recognized on the completed-contract method and therefore when the project
      is completed (or closed). This method is used because financial position and
      results of operations do not vary significantly from those which would result
      from use of percentage-of-completion method. A contract is considered complete
      when all costs except insignificant items have been incurred and the
      installation is operating according to specifications or has been accepted
      by
      the customer. Contract costs include all direct materials and labor costs and
      those indirect costs related to contract performance, such as indirect labor,
      supplies, tools, repairs, and depreciation costs. General and administrative
      costs are charged to expense as incurred. Costs in excess of amounts billed
      are
      classified as current assets under costs in excess of billings on uncompleted
      contracts. Billings in excess of costs are classified under current liabilities
      as billings in excess of costs on uncompleted contracts.





9
 *Table
          of Contents*




**(2)
      Summary of Significant Accounting Policies (continued)**





Capitalized
      Software —Certain
      capitalized software assets have been contributed to the Company from related
      entities under common ownership and control. The capitalized software assets
      include certain external direct costs of materials and services consumed in
      developing internal-use software (System C) for home plans and designs, and
      operating systems and policies for homebuilders. These costs include payroll
      and
      payroll-related costs for employees and contractors who are directly associated
      with and who devote time to the internal-use computer software project (to
      the
      extent of the item spent directly on the project) during the application
      development stage. Training costs, data conversion costs, internal costs for
      upgrades and enhancements, and internal costs incurred for maintenance are
      all
      expensed as incurred. General and administrative costs and overhead costs are
      also expensed as incurred. The assets will commence amortization when the asset
      is considered to be in the post-implementation phase (i.e. when the development
      of internal use software is completed) which is projected to be in 2005. At
      such
      time, the capitalized software costs will be amortized on a straight-line basis
      over the estimated economic life of the asset to be determined.





Comprehensive
      Income (Loss) —The
      Company adopted Financial Accounting Standards Board Statement of Financial
      Accounting Standards (SFAS) No. 130, *“Reporting
      Comprehensive Income”* ,
      which
      establishes standards for the reporting and display of comprehensive income
      and
      its components in the consolidated financial statements. There were no items
      of
      comprehensive income (loss) applicable to the Company during the periods covered
      in the consolidated financial statements.





S-8
      Share Payments —The
      Company currently provides S-8 registered shares as compensation for many
      services rendered as a means of conserving cash until it obtains debt or equity
      financing. The Company accrues the value of services rendered as an expense
      or
      capital expenditure (when it is readily determinable) instead of the stock
      price
      at the time the shares are transferred. Employees, consultants and vendors
      that
      receive such shares understand that there is risk associated with the volatility
      of the share price. In some cases there are “true-up” provisions which would
      result in more or less shares to be issued; however, the expense or capital
      expenditure would have already been reflected on the company’s financial
      statements at the time services were rendered.





Advertising
      Costs —Advertising
      costs are expensed as incurred. The Company does not incur any direct-response
      advertising costs.





Net
      Loss per Common Share —Statement
      of Financial Accounting Standard (SFAS) No. 128 requires dual presentation
      of
      basic and diluted earnings per share (EPS) with a reconciliation of the
      numerator and denominator of the EPS computations. Basic earnings per share
      amounts are based on the weighted average shares of common stock outstanding.
      If
      applicable, diluted earnings per share would assume the conversion, exercise
      or
      issuance of all potential common stock instruments such as options, warrants
      and
      convertible securities, unless the effect is to reduce a loss or increase
      earnings per share. Accordingly, this presentation has been adopted for the
      period presented. There were no adjustments required for the period presented
      in
      the computation of diluted earnings per share.





Income
      Taxes —Income
      taxes are provided in accordance with Statement of Financial Accounting
      Standards (SFAS) No. 109, *“Accounting
      for Income Taxes.”* A
      deferred tax asset or liability is recorded for all temporary differences
      between financial and tax reporting and net operating
      loss-carryforwards.





Deferred
      tax assets are reduced by a valuation allowance when, in the opinion of
      management, it is more likely than not that, some portion or the entire deferred
      tax asset will not be realized. Deferred tax assets and liabilities are adjusted
      for the effect of changes in tax laws and rates on the date of
      enactment.





Fair
      Value of Financial Instruments —The
      carrying amounts reported in the consolidated balance sheet for cash, accounts
      receivable and payable approximate fair value based on the short-term maturity
      of these instruments.





Accounts
      Receivable —Accounts
      deemed uncollectible are written off in the year they become uncollectible.





Impairment
      of Long-Lived Assets —The
      Company evaluated the recoverability of its property and equipment, and other
      assets in accordance with Statements of Financial Accounting Standards (SFAS)
      No. 121, *“Accounting
      for the Impairment of Long-Lived Assets to be Disposed of”* which
      requires recognition of impairment of long-lived assets in the event the net
      book value of such assets exceeds the estimated future undiscounted cash flows
      attributable to such assets or the business to which such intangible assets
      relate.





Property
      and Equipment —Property
      and equipment is stated at cost. Depreciation is provided by the straight-line
      method over the estimated economic life of the property and equipment remaining
      from five to seven years.




10
 *Table
          of Contents*




**(3)
      Recent Accounting Pronouncements**





In
      June
      2001, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards (SFAS) No. 143, *“Accounting
      for Asset Retirement Obligations”* which
      addresses the accounting and reporting for obligations associated with the
      retirement of tangible long-lived assets and the associated retirement costs.
      SFAS No. 143 requires that the fair value of a liability for an asset retirement
      obligation be recognized in the period in which it is incurred if a reasonable
      estimate of fair value cannot be made. SFAS No. 143 is effective for financial
      statements issued for fiscal years beginning after June 15, 2002. The Company
      does not expect SFAS No. 143 to have a material effect on its consolidated
      financial condition or consolidated cash flows.





In
      August
      2001, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards (SFAS) No. 144, *“Accounting
      for the Impairment or Disposal of Long-Lived Assets”.* SFAS No.
      144 generally establishes a standard framework to measure the impairment of
      long-lived assets and expands the Accounting Principles Board (“APB”) 30,
“Reporting the Results of Operations—Reporting the Effects of Disposal of a
      Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
      Events and Transactions” to include a component of the entity (rather than a
      segment of the business). SFAS No.144 is effective for financial statements
      issued for fiscal years beginning after December 15, 2001. The Company does
      not
      expect SFAS No. 144 to have a material effect on its consolidated financial
      condition and consolidated cash flows.





In
      April
      of 2002, Statement of Financial Accounting Standards (SFAS) No. 145 was issued
      which rescinded SFAS Statements 4, 44, and 64, amended No. 13 and contained
      technical corrections. As a result of SFAS No. 145, gains and losses from
      extinguishments of debt will be classified as extraordinary items only if they
      meet the criteria in APB Opinion No. 30, that they are unusual and infrequent
      and not part of an entity’s recurring operations. The Company adopted SFAS on
      January 1, 2004. The Company does not expect SFAS No. 145 to have a material
      effect on its financial condition or cash flows.





In
      July
      of 2002, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standard (SFAS) No. 146, which addresses significant issues regarding
      the recognition, measurement, and reporting of costs that are associated with
      exit and disposal activities, including restructuring activities that are
      currently accounted for pursuant to the guidance that the Emerging Issues Task
      Force (EITF) has set forth in EITF Issue No. 94-3, *“Liability
      Recognition for Certain Employee Termination Benefits and Other Costs to Exit
      an
      Activity (Including Certain Costs Incurred in a Restructuring)”* .
      SFAS
      No. 146 revises the accounting for certain lease termination costs and employee
      termination benefits, which are generally recognized in connection with
      restructuring charges. The provisions of SFAS 146 are effective for exit or
      disposal activities that are initiated after December 31, 2002. The Company
      does
      not expect SFAS No. 146 to have an impact its financial statements as adopted
      on
      January 1, 2004.





In
      November 2002, the Financial Accounting Standards Board issued Interpretation
      No. 45 (FIN 45), “ *Guarantor’s
      Accounting and Disclosure Requirements for Guarantee, Including Indirect
      Guarantees or Indebtedness of Others”* ,
      which
      addresses the disclosures to be made by a guarantor in its interim and annual
      financial statements about its obligations under guarantees. FIN 45 also
      requires the recognition of a liability by a guarantor at the inception of
      certain guarantees that are entered into or modified after December 31,
      2002.





In
      December 2002, the Financial Accounting Standards Board issued Statement of
      Financial Accounting Standard (SFAS) No. 148, *“Accounting
      for Stock-Based Compensation Transition and Disclosure”* —an
      amendment to SFAS No. 123 (SFAS No. 148), which provides alternative methods
      of
      transition for companies voluntarily planning on implementing the fair value
      recognition provisions of SFAS No. 123. SFAS No. 148 also revises the disclosure
      provisions of SFAS No. 123 to require more prominent disclosure of the method
      of
      accounting for stock-based compensation, and requiring disclosure of pro forma
      net income and earnings per share as if the fair value recognition provisions
      of
      SFAS No. 123 had been applied from the original effective date of SFAS No.
      123.
      The Company adopted the disclosures provisions of SFAS No. 148 for the quarters
      ending after December 15, 2002.





In
      January 2003, the EITF released Issue No. 00-21, (EITF 00-21), *“Revenue
      Arrangements with Multiple Deliveries”* ,
      which
      addressed certain aspects of the accounting by a vendor for arrangement under
      which it will perform multiple revenue-generating activities. Specifically,
      EITF
      00-21 addresses whether an arrangement contains more than one unit of accounting
      and the measurement and allocation to the separate units of accounting in the
      arrangement. EITF 00-21 is effective for revenue arrangements entered into
      in
      fiscal periods beginning after June 15, 2003. The adoption of this standard
      will
      not have an impact on the Company’s financial statements.





In
      May
      2003, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards (SFAS) No. 149, *“Amendment
      of Statement 133 on Derivative Instruments and Hedging
      Activities.”* SFAS No.
      149 amends and clarifies accounting for derivative instruments, including
      certain derivative instruments embedded in other contracts, and for hedging
      activities under SFAS No. 133. SFAS No. 149 is effective for contracts entered
      into or modified after June 30, 2003 and for hedging relationships designated
      after June 30, 2003. The Company does not believe that there will be any impact
      on its financial statements.





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**(3)** **Recent
      Accounting Pronouncements (continued)**





In
      May
      2003, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards (SFAS) No. 150, *“Accounting
      for Certain Financial Instruments with Characteristics of both Liabilities
      and
      Equity.”* SFAS No.
      150 establishes standards for how companies classify and measure certain
      financial instruments with characteristics of both liabilities and equity.
      It
      requires companies to classify a financial instrument that is within its scope
      as a liability (or an asset in some characteristics). SFAS No. 150 is effective
      for financial instruments entered into or modified after May 31, 2003. The
      standard will not impact the Company’s financial statements.





**(4)
      Income Taxes**





Due
      to
      the operating loss and the inability to recognize an income tax benefit
      therefrom, there is no provision for current or deferred federal or state income
      taxes for the periods ended June 30, 2005 and 2004.





Deferred
      income taxes reflect the net tax effects of temporary differences between the
      carrying amounts of assets and liabilities for financial reporting purposes
      and
      the amount used for federal and state income tax purposes.





The
      Company’s total deferred tax asset, calculated using federal and state effective
      tax rates, as of December 31, 2004 is as follows:





Total
      deferred tax assets    $648,000


Valuation
      allowance (648,000)





Net
      deferred tax asset   $
      ----


=======





The
      reconciliation of income taxes computed at the federal statutory income tax
      rate
      to total income taxes for the periods ended March 31, 2005 and 2004 is as
      follows:





2005   2004


Income
      tax computed at the federal statutory
      rate 34%   34%


State
      income taxes, net of federal tax benefit     4% 4%


Valuation
      allowance (38%)   (38%)


Total
      deferred tax
      asset 0% 0%





Because
      of the Company’s lack of earnings history, the deferred tax asset has been fully
      offset by a valuation allowance.





As
      of
      December 31, 2004, the Company had federal and state net operating loss carry
      forwards in the amount of approximately $1,700,000, which expire at various
      times through the year 2025.





**(5)
      Going Concern**





As
      shown
      in the audited financial statements for the year ended December 31, 2004
      (incorporated by reference to HRI’s Annual Report on SEC Form 10-KSB for year
      ended December 31, 2004), the Company has suffered recurring losses from
      operations to date. During 2004, the Company had minimal revenues, a net loss
      of
      $927,196, a net deficiency of $1,707,822 and a net working capital deficit
      of
      $628,974.





Management
      believes that actions presently being taken to raise equity capital, seek
      strategic relationships and alliances, and build its marketing efforts to
      generate positive cash flow provide the means for the Company to continue as
      a
      going concern. As of the end of the second quarter of 2005, the Company has
      obtained new contracts totaling $2,900,472 of sales in incomplete construction
      projects and has a number of projects close to signing a contract. On average
      these new construction projects are completed within 9 months. Additionally,
      the
      Company will continue to rely upon equity infusions from investors in order
      to
      improve liquidity and sustain operations. In addition, the company entered
      into
      a strategic partnership with Wachovia Corporation which includes a $1 million
      operating line of credit which will help address cash needs for the balance
      of
      the year (see discussion under Management Discussion and Analysis for additional
      details). The company has investors that have indicated a willingness to
      contribute equity to finance on-going operations and the Company did obtain
      a
      commitment from Dutchess Private Equities Fund, LP for a $12 million equity
      line
      of credit in March, 2005 that it declined as management believes we will obtain
      better financing terms from interested prospective investors. The financial
      statements do not include any adjustments that might result from the outcome
      of
      this uncertainty.





12
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**(6)
      Acquisition and related reorganization**





On
      February 19, 2004, HouseRaising, Inc., a Delaware corporation, Technology
      Connections, Inc., a North Carolina corporation, and the shareholders of
      HouseRaising, Inc., executed an Agreement and Plan of Merger (“the Merger
      Agreement”), pursuant to which HouseRaising, Inc. agreed to merge with and into
      Technology Connections, Inc., (“the Merger”) with the HouseRaising, Inc.
      Stockholders receiving in the aggregate 27,288,732 shares of common stock and
      1,000,000 shares of Class A Convertible Preferred Stock of Technology
      Connections, Inc. in exchange for their shares of HouseRaising, Inc. In
      addition, pursuant to the Merger Agreement, Technology Connections, Inc. agreed
      to change its corporate name from “Technology Connections, Inc.” to
“HouseRaising, Inc.” prior to closing.





The
      shares of Class A Convertible Preferred Stock to be issued in the Merger are
      convertible into ten (10) shares of fully paid and non-assessable shares of
      common stock five (5) years after the date of issuance, and they have a class
      vote to approve or disapprove any merger, sale of assets, combination or
      reorganization involving HouseRaising, or other fundamental corporate
      transaction involving HouseRaising, Inc. In addition, each share of Class A
      Convertible Preferred Stock issued in the Merger is entitled to ten (10) votes
      per share on all matters on which common stock votes upon issuance.





On
      August
      31, 2004, the Merger was consummated when Articles of Merger and name change
      were filed by the parties with the Secretary of State in the State of North
      Carolina.





The
      acquisition was accounted for as a reverse merger wherein HouseRaising, Inc.
      was
      the accounting acquirer and Technology Connections, Inc. was the legal acquirer.
      Accordingly, the accounting acquirer recorded the assets purchased and
      liabilities assumed as part of the merger and the entire equity section of
      the
      legal acquirer was eliminated with negative book value acquired offset against
      the paid in capital of the accounting acquirer, in accordance with SFAS #141.





**(7)
      Non-qualified Stock Compensation Plan**





On
      July
      7, the Company adopted Amendment Number 2 to its 2004 Non-qualified Stock
      Compensation Plan (Stock Plan) where the Company may compensate key employees,
      advisors, and consultants by issuing them shares of its capital stock or options
      to purchase shares of its capital stock in exchange for services rendered and
      to
      be rendered and thereby conserve the Company’s cash resources. The Company has
      reserved an additional 2,000,000 shares of its $.001 par value Common Stock
      for
      these purposes. The Stock Plan will not exceed 30% of its outstanding common
      stock at any given time.





**(8)
      Development Stage Company**





The
      Company is in the development stage as of June 20, 2005 and to date has had
      minimal significant operations. Recovery of the Company’s assets is dependent on
      future events, the outcome of which is indeterminable. In addition, successful
      completion of the Company’s development program and its transition, ultimately,
      to attaining profitable operations is dependent upon obtaining adequate
      financing to fulfill its development activities and achieving a level of sales
      adequate to support the Company’s cost structure.





**(9)
      Commitments**





The
      Company leases its office facilities. The Company also has one vehicle under
      lease that has been classified as an operating lease expiring in September
      2006.
      Payment due under the lease is $1,384 per month.





Rent
      expense was $78,574 and $79,024 in 2004 and 2003, respectively.





Future
      minimum rental payments as of December 31, 2004 in the aggregate and for each
      of
      the two succeeding years are as follows:


Year      Amount


2005      $
      78,574


2006      $
      78,574


Total  $157,148


13
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**(10)
      Notes Payable**





**Notes
      payable at June 30, 2005 consist of the following:**





Unsecured
      note payable to an unrelated party.


Bearing
      8% interest.         $
      5,640





Unsecured
      note payable to an unrelated party.


Bearing
      8%
      interest. $13,177





Secured
      note payable to an unrelated party.


Bearing
      0% interest. Note matures April
      2005. $30,000
      **





Secured
      note payable to an unrelated party.


Bearing
      0% interest. Note matured April
      2005. $50,000
      **





Secured
      note payable to an unrelated party.


Bearing
      15% interest. Note matures May
      2005. $155,000
      **





Secured
      note payable to an unrelated party.


Bearing
      0% interest. Note matures April
      2005. $91,500
      **





Unsecured
      note payable to an unrelated party.


Bearing
      0%
      interest. $1,851





Secured
      note payable to an unrelated party.


Bearing
      0% interest. Note matures April
      2005. $105,000
      **





Secured
      note payable to an unrelated party.


Bearing
      0% interest. Note matures April
      2005. $37,500
      **





Unsecured
      note payable to a related party


Bearing
      0% interest. 54,627





Secured
      demand note payable to a related party.


Bearing
      6% interest. Note matures December
      2005 $516,017





Total
      Current
      Portion $1,060,313


========




**In
      September, 2004, the Company converted these debts to equity by issuing
      restricted common shares of the Company’s stock as full settlement for interest
      obligations existing on these promissory notes, and issued new, non-interest
      bearing promissory notes payable within 6 months from date of reissue. For
      the
      year ending December 31, 2004, the Company imputed interest on the 0% interest
      bearing notes using a rate of 6%. No further interest is due on these notes
      until they are paid in full at which time imputed interest will be calculated.
      As of the date of this filing, these notes have matured, but payment has not
      yet
      been made; it is expected but uncertain whether the company will be able to
      extend these existing agreements on similar terms.






14
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**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
      OPERATIONS.**





**Management’s
      Discussion and Analysis of Financial Condition and Results of Operations for
      June 30, 2005**





*(The
      following discussion should be read in conjunction with the Financial Statements
      and related notes thereto included elsewhere in this section.)*





**Executive
      Overview & Strategy**





HouseRaising,
      Inc. is a development stage company in the business of selling, designing and
      managing design/build and renovation projects and home building solutions in
      the
      residential homebuilding market for homebuyers and homebuilders. HRI is a unique
      company that sells, designs, and builds unique homes for homebuyers on lots
      they
      have purchased, and acts as contractors in providing renovations on customer’s
      existing homes. Using its own proprietary software, HouseRaising brings
      innovative technology/solutions to the custom home building industry, thus
      helping home buyers build their own home and independent home builders manage
      the complete building process.





On
      February 19, 2004, HouseRaising executed an Agreement and Plan of Merger (“the
      Merger”) to which HRI agrees to merge with and into Technology Connections, Inc.
      This transaction was structured as a reverse acquisition whereby the existing
      shareholders of HouseRaising obtained control of Technology Connections, Inc.
      and the resulting entity agreed to change its name to HouseRaising, Inc. On
      August 31, 2004, the Merger was consummated when Articles of Merger were filed
      by the parties with the Secretary of State of North Carolina.





**What
      We Are:** Functioning
      exclusively in the custom homebuilding arena, HouseRaising, Inc. is a Managed
      Service Provider that will revolutionize the way custom homes are designed
      and
      built by small homebuilders.





**What
      We Do:** Performing **** the
      role
      of “General Manager,” HouseRaising manages design and build projects with
      services that improve the quality of the home and the homebuilding experience
      while lowering its total costs by 10 to 15%. By providing managed services
      to
      homebuyers, builders and vendors, HRI turns complicated custom home and
      renovation projects into financially sound and fun endeavors.





**How
      We Do It:** Operating
      from a national control center and zone design centers located throughout the
      country, HouseRaising personnel utilize a patent-pending process to define
      and
      manage every step in designing and building custom homes.





Before
      investing in the project, homebuyers visit HouseRaising design centers, which
      display every component that goes into a new home, allowing customers to examine
      the quality and make selections. Meeting with homebuyers and the builder, HRI
      consultants develop turn-key sales prices, select specifications, create
      workable contracts, designs the home, obtains architectural and engineering
      approvals, prepares accurate budgets, arranges and manages financing, and
      coordinates the projects through affiliated builders and vendors committed
      to
      providing quality products and services for fixed prices.





**Our
      Market Potential:** Of
      the
      approximately 500,000 custom home projects built by about 250,000 small builders
      in America each year, we believe that every one of them could benefit from
      HouseRaising’s managed services. HouseRaising sells its services through a
      two—channel marketing and sales approach. Channel #1: HRI approaches the small
      custom builder who has existing buyer clients who need HouseRaising’s services.
      Channel #2: HouseRaising markets its services directly to homebuyers who need
      quality builders for their projects.





**Our
      Financial Plan:** The
      Company is pursuing a three step financial plan: 1) establishing an operating
      line of credit, 2) pursuing a private placement offering, and 3) obtaining
      long-term financing. The company entered into a strategic partnership with
      Wachovia Corporation as announced on July 11, 2005 which includes a $1 million
      operating line of credit which is expected to address cash needs for the balance
      of the year. The company is currently working on raising additional funds
      through a private placement offering for up to $3.5 million. The funds raised
      from this offering will be used for
      new
      home and renovation sales and marketing expense in the Carolinas Zone (covering
      North and South Carolina) including completing our design center in Charlotte,
      NC, continued software development and to
      provide working
      capital needed for repayment of outstanding notes payable. Management will
      thereafter seek long-term financing through additional debt or equity financing
      of up to $15 million to fund rollout of additional zone operations. There is
      no
      assurance that the company will be able to obtain additional financing on terms
      acceptable to its management.





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Management
      and independent contractors providing services to the company have agreed to
      accept shares as a means of paying for critical services to implement its
      business plan. The Company has limited plans to hire additional employees until
      management is successful in raising capital through the private placement
      offering. HouseRaising’s management has not entered into any commitments for
      significant capital expenditures, except the software development project
      (System C), whereby the company issues shares of common stock for services
      rendered.





Part
      of
      HouseRaising, Inc.’s strategy is to build its business through the merger or
      acquisition of existing home builders and technology companies that will benefit
      our application service business at a fair price. It is reasonable to expect
      that such activity is an ongoing part of HRI’s business development efforts. At
      any given time the company could be in process of analyzing or making an offer
      for such a transaction. However, any discussion or speculation on specific
      transactions is only conjecture until such time that a definite agreement is
      signed and announced in an SEC filing. It is also possible that no transactions
      will take place at all.





HouseRaising’s
      current focus is implementing the Carolinas’ Zone operation and completing the
      proprietary software that will be used to design and build multiple projects
      simultaneously. Beginning in 2004, HouseRaising of Greater Charlotte, LLC
      commenced sales of new home and renovation projects utilizing a manual version
      of the system. Further discussion on the Company’s business plan can be found in
      Item 1 of the Company’s Annual Report on SEC Form 10-KSB for year ended December
      31, 2004, which is incorporated by reference.





**Results
      of Operations for Quarter Ended June 30, 2005 Compared to June 30,
      2004**





**Sales**





The
      Company reports total project sales based on the contract amount due to design
      and build project, in the quarter in which the sale is approved and closed.
      HouseRaising had no sales that closed in the quarter ended June 30, 2005 and
      no
      sales that closed in the same period in 2004. The company has shifted from
      a
      focus on software development to operational implementation of its business
      plan
      in the Carolinas Zone with new construction and remodeling efforts expected
      to
      increase in the future. The Company
      currently has signed contracts totaling $2,900,472 in
      sales
      that are projected to be completed within an average of 9 months. All
      sales were from unrelated third parties and were made primarily to new home
      buyers and remodeling work.





**Cost
      of Sales**





The
      cost
      of sales includes the building expense plus other direct costs associated with
      new construction, such as subcontractors and permits. It is customary to
      experience variations in the cost of sales as a percentage of net sales based
      on
      the types of homes at any given location and the related cost of labor to
      complete the jobs. Commensurate with the sales described above, there were
      no
      costs of sales recorded for the quarters ending June 30, 2005 and 2004 given
      that no sales closed during those periods.





**Gross
      Profits**





The
      Company earns profits as the net difference of the project’s sales price and
      total costs including fees. The company conducts design/build projects with
      various affiliated builder relationships. Costs associated with in-house builder
      relationships are part of the projects total costs and HouseRaising’s profit is
      the difference in the sales price and all direct costs and fees. In a builder
      partnership relationship the company divides profits with the builder, which
      is
      accounted for as a cost to the project. HRI’s profit represents the sales price
      less all costs, with the builder share of the profits listed as a cost to the
      project. Due to the timing of new home sales and remodeling work, HouseRaising
      had no gross profits for the quarters ending June 30, 2005 and 2004. The company
      would expect as existing contracts are completed in subsequent quarters that
      it
      would record positive gross profits going forward.





**Sales
      and Service Fee Revenues**





Sales
      and
      service fee revenues from pre-sold projects consist of sales commissions,
      architectural design fees, engineering fees, and a series of project
      coordinating expenses charged to each design/build project. These fees are
      built
      into the projects total price with home buyers paying these charges at the
      beginning of construction. The fees are a direct cost to the project. There
      were
      no sales or service fee revenues for the second quarter ended June 30, 2005
      compared to net negative revenue of ($40,739) in 2004. The results in the second
      quarter of 2004 reflect combined HouseRaising, Inc. and Technology Connections
      operations which had to write-off a project that had previously been reported
      as
      a sales and service fee revenue in the first quarter of 2004. Going forward
      we
      would expect this area of revenue to continue to grow as our operations expand
      and we obtain contracts for additional projects.




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**Other
      Income**





The
      Company earned $47 in other income for the period ending June 30, 2005, compared
      to no other income for the same period in 2004. We would not expect this to
      increase in 2005 as we implement our business plan focused on design/build
      and
      renovation projects and sales and service fees rather than consulting
      income.





**Net
      Revenues**





HouseRaising
      had no net revenues for the second quarter ended June 20, 2005 compared to
      net
      negative revenue of ($40,739) for the same period of 2004 due to the write-off
      noted above. The net revenue level for the second quarter of 2005 was
      principally due to the timing of new home sales and remodeling work and the
      company’s focus in 2004 on developing its System-C software system.





**Expenses**





Total
      expenses for the quarter ended June 30, 2005 and 2004 were $1,560,018 and
      $184,557, respectively. The
      large
      increase in expenses for the second quarter is primarily due to an increase
      in
      consulting fees incurred in an effort to maintain our stock price in response
      to
      what we believe was a “wave of coordinated naked short selling” which we
      reported to the NASD as described in our filing with the SEC on Form 8-K on
      May
      9, 2005. These fees were principally investor relations and related consulting
      services totaling $1,149,180 which was substantially funded through the issuance
      of restricted shares of common stock. We did also continue to incur higher
      costs
      compared to last year in the selling, general and administration related to
      developing HouseRaising’s Carolinas zone and design/build operations in
      Charlotte, NC as well as executive management to raise capital for the company.
      The SG&A expenses were slightly lower than the first quarter of 2005. The
      administrative costs include advertising, compensation for employees and
      contractors who are directly associated with and who devote time to selling,
      designing and building pre-sold homes and renovation projects in the Greater
      Charlotte region. A substantial portion of these expenses were paid with S-8
      shares consistent with stated accounting policies until such time that the
      company raises additional capital.





We
      do not
      expect that we would continue to incur the large consulting fees, but would
      expect to continue incurring selling, general and administrative costs to
      continue developing our zone operations in the Carolinas. Due to our start
      up
      nature, we issue shares of common stock (restricted or S-8 as appropriate)
      to
      professionals and consultants for their marketing, investor relations and
      general business consulting services and expense based on the value of the
      services rendered. All of our accounts payable and accrued expenses are trade
      payables in connection with the normal course of business. We expect to develop
      revenue sources consistent with these expense levels as we roll out our business
      plan in 2005 and 2006.





**Other
      Expense**





HouseRaising
      had interest expense of $16,526 for the quarter ended June 30, 2005 compared
      to
      $43,344 for the same period in 2004. This represents accrued or imputed interest
      related to bridge lenders for both HouseRaising as well as the former Technology
      Connections entity. In 2003, HouseRaising completed a debt offering to a select
      group of accredited investors, which provided cash of $507,727 to HouseRaising,
      Inc. In November, 2004, the Company completed an equity-for-debt swap which
      reimbursed these investors for their debts and converted much of the outstanding
      debt to restricted shares in the company. Going forward we would expect this
      level of interest expense to continue at its current level unless the company
      cannot obtain equity financing and must resort to borrowing additional funds.





**Income
      / Losses**





The
      net
      loss for the quarter ended June 30, 2005 was $1,576,497 versus a net loss of
      $268,640 in the same period in 2004, an increase in the loss of $1,307,857.
      The
      increase in net loss is directly attributable to the increase in consulting
      fees
      (as described under ‘Expenses’) and administrative expenses to commence rolling
      out operating activities of the company, including establishing the Carolinas
      operating zone and raising capital funding for the company. Future income will
      depend on the success of implementing the company’s business plan in 2005. The
      company does have approximately $2,900,472 of new home construction work in
      process for 2005 which is consistent with implementing our business plan. The
      actual sales will be recorded upon completion of each project while sales and
      service revenue will be recorded as earned. There is no guarantee that all
      of
      these projects will be completed.




17
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          of Contents*





**Results
      of Operations for Six Months Ended June 30, 2005 Compared to June 30,
      2004**





**Sales**





The
      Company reports total project sales based on the contract amount due to design
      and build project, in the quarter in which the sale is approved and closed.
      HouseRaising had sales of $1,590 for the six months ended June 30, 2005,
      compared to $39,026 for the same period in 2004. The results of operations
      in
      2004 reflect the combined revenue of HouseRaising, Inc. and Technology
      Connections, Inc. Upon completion of the merger on August 31, 2004, the
      operations of the former Technology Connections, Inc. were discontinued. The
      sales for HouseRaising, Inc. decreased due to the timing of current new
      construction and remodeling in the greater Charlotte area and as the company
      shifts from a focus on software development to operational implementation of
      its
      business plan in the Carolinas Zone. All sales were from unrelated third parties
      and were made primarily to new home buyers and remodeling work. As of the end
      of
      the second quarter of 2005,
      the Company has new contracts totaling $2,900,472 in sales that are projected
      to
      be completed within an average of 9 months.





**Cost
      of Sales**





The
      cost
      of sales includes the building expense plus other direct costs associated with
      new construction, such as subcontractors and permits. It is customary to
      experience variations in the cost of sales as a percentage of net sales based
      on
      the types of homes at any given location and the related cost of labor to
      complete the jobs. Commensurate with the sales described above, the cost of
      sales for the year to date period ending June 30, 2005 were $1,248 versus
      $28,471 for the same period in 2004.





**Gross
      Profits**





The
      Company earns profits as the net difference of the project’s sales price and
      total costs including fees as described under the first quarter results (see
      discussion earlier for more details). HRI’s profit represents the sales price
      less all costs, with the builder share of the profits listed as a cost to the
      project. Due to the timing of new home sales and remodeling work, HouseRaising
      had gross profits of $342 for a small renovation project for the six months
      ended June 30, 2005 compared to $10,555 for the same period in 2004.





**Sales
      and Service Fee Revenues**





Sales
      and
      service fee revenues from pre-sold projects consist of sales commissions,
      architectural design fees, engineering fees, and a series of project
      coordinating expenses charged to each design/build project. These fees are
      built
      into the projects total price with home buyers paying these charges at the
      beginning of construction. The fees are a direct cost to the project. Sales
      and
      service fee revenues were $8,462 for the first six months of 2005 compared
      to
      $24,523 in 2004. Going forward we would expect this to continue to grow as
      our
      operations expand and we obtain contracts for additional projects.





**Other
      Income**





The
      Company earned $141 in other income for the six months ending June 30, 2005,
      compared to $6,150 for the same period in 2004. We would not expect this to
      increase in 2005 as we implement our business plan focused on design/build
      and
      renovation projects and sales and service fees.





**Net
      Revenues**





HouseRaising’s
      net revenues were $8,945 for the first two quarters of 2005 compared to $41,228
      for 2004. The net revenue decline was principally due to the timing of new
      home
      sales and remodeling work and the company’s focus in 2004 on developing its
      System-C software system.





**Expenses**





Total
      expenses for the six months ended June 30, 2005 and 2004 were $2,540,482 and
      $442,463, respectively. As described earlier under the results for the second
      quarter, the
      increase in year-to-date expenses is primarily due to an increase in consulting
      fees incurred in an effort to maintain our stock price in response to what
      we
      believe was a “wave of coordinated naked short selling” which we reported to the
      NASD as described in our filing with the SEC on Form 8-K on May 9, 2005. The
      consulting expenses we incurred in the first quarter were less than half as
      much. These fees were substantially funded through the issuance of restricted
      shares of common stock.





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We
      have
      incurred higher costs compared to last year in selling, general and
      administration related to developing HouseRaising’s Carolinas zone and
      design/build operations in Charlotte, NC as well as executive management to
      raise capital for the company. The SG&A expenses were slightly lower in the
      second quarter versus the first quarter of 2005. The administrative costs
      include advertising, compensation for employees and contractors who are directly
      associated with and who devote time to selling, designing and building pre-sold
      homes and renovation projects in the Greater Charlotte region. A substantial
      portion of these expenses were paid with S-8 shares consistent with stated
      accounting policies until such time that the company raises additional
      capital.





We
      would
      expect our consulting fees to moderate considerably going forward, but would
      expect to continue incurring selling, general and administrative costs to
      continue developing our zone operations in the Carolinas. Due to our start
      up
      nature, we issue shares of common stock (restricted or S-8 as appropriate)
      to
      professionals and consultants for their marketing, investor relations and
      general business consulting services and expense based on the value of the
      services rendered. All of our accounts payable and accrued expenses are trade
      payables in connection with the normal course of business. We expect to develop
      revenue sources consistent with these expense levels as we roll out our business
      plan in 2005 and 2006.





**Other
      Expense**





HouseRaising
      had interest expense of $25,773 for the six months ended June 30, 2005 compared
      to $46,137 for the same period in 2004. This represents accrued or imputed
      interest to reimburse bridge lenders for both HouseRaising as well as the former
      Technology Connections entity. In 2003, HouseRaising completed a debt offering
      to a select group of accredited investors, which provided cash of $507,727
      to
      HouseRaising, Inc. In November, 2004, the Company completed an equity-for-debt
      swap which reimbursed these investors for their debts and converted much of
      the
      outstanding debt to restricted shares in the company. Going forward we would
      expect the level of interest expense to continue at its current level unless
      the
      company cannot obtain equity financing and must resort to borrowing additional
      funds.





**Income
      / Losses**





The
      net
      loss for the first two quarters ended June 30, 2005 was $2,557,310 versus a
      net
      loss of $447,372 in the same period in 2004, an increase in the loss of
      $2,109,938. The increase in net loss is directly attributable to the increase
      in
      consulting fees (as described under ‘Expenses’) and administrative expenses to
      commence rolling out operating activities of the company, including establishing
      the Carolinas operating zone and raising capital funding for the company.





Future
      income will depend on the success of implementing the company’s business plan in
      2005 and 2006. The company does have approximately $2,900,472 of new home
      construction work in process for 2005 which is consistent with implementing
      our
      business plan. The company does also have additional projects in its development
      pipeline, but these have not yet turned into reportable contracts. Actual sales
      will be recorded upon completion of each project while sales and service revenue
      will be recorded as earned. There is no guarantee that all of these projects
      will be completed.





**Impact
      of Inflation.**





We
      believe that inflation has had a negligible effect on operations since
      inception. We believe that we can offset inflationary increases in the cost
      of
      labor by increasing sales and improving operating efficiencies.





**Liquidity
      and Capital Resources.**





[Note:
      the cash flows reported for the prior year reflect nine-months ended September
      30, 2004 results which reflects a combination of cash flow for HouseRaising,
      Inc. and Technology Connections which operated as separate companies until
      completion of their merger on August 31, 2004). Cash flows used in operations
      was $288,380 for the first two quarters ended June 30, 2005 versus cash flows
      used in operations of $172,441 for the same period in 2004. This reflects a
      net
      increase in cash used by operations of $115,939, principally due to the increase
      in net loss and increase in expenditures for the capitalized software offset
      by
      an increase in the issuance of common stock for services rendered.





Cash
      flows used in investment activities were $40,042 for the six months ended June
      30, 2005 and $24,468 for the same period in 2004. This was principally due
      to
      the purchase of property and equipment associated with new personnel engaged
      for
      operating purposes in the first two quarters of 2005 and the purchase of the
      assets of Integrity
      Contractors Inc. (“ICI”) of Pensacola, Florida as reported on SEC Form 8-K on
      April 22, 2005.





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Cash
      flows provided by financing activities were $323,556 for the six months ended
      June 30, 2005 and $203,046 for the six-months ended June 30, 2004. The principle
      difference was an increase in notes payable by a related party to support
      current operations in the first six months of 2005.





Overall,
      we have funded our cash needs from inception through June 30, 2005 with a series
      of debt and equity transactions. If we are unable to receive additional cash
      from related parties, we may need to rely on financing from outside sources
      through debt or equity transactions. Our related parties are under no legal
      obligation to provide us with capital infusions. Failure to obtain such
      financing could have a material adverse effect on operations and financial
      condition.





We
      had
      cash on hand of $19,901 and a working capital deficit of $1,217,975 as of June
      30, 2005 which is not sufficient to fund our operations through the next twelve
      months. Our working capital deficit is due to current obligations in accounts
      payable and notes payable.





The
      Company is pursuing a three step financial plan: 1) establishing an operating
      line of credit, 2) pursuing a private placement offering, and 3) obtaining
      long-term financing. The company entered into a strategic partnership with
      Wachovia Corporation as announced on July 11, 2005 which includes a $1 million
      operating line of credit which is expected to address cash needs for the balance
      of the year. The company is currently working on raising additional funds
      through a private placement offering for up to $3.5 million. The funds raised
      from this offering will be used for
      new
      home and renovation sales and marketing expense in the Carolinas Zone (covering
      North and South Carolina) including completing our design center in Charlotte,
      NC, continued software development and to
      provide working
      capital needed for repayment of outstanding notes payable.





Thereafter,
      we will rely on new revenue from our business development efforts. The company
      does have $2,900,472 of new home construction work in process for 2005, as
      well
      as a number of prospects that have not yet signed contracts. The actual sales
      will be recorded upon completion of each project while sales and service revenue
      will be recorded as earned. If the projected revenues fall short of needed
      capital and the company is not able to complete its private placement offering,
      we may not be able to sustain our capital needs for the next twelve months.
      In
      such a case, we would need to obtain additional capital through equity or debt
      financing to sustain operations. M odifications
      to our business plans or additional acquisitions may require additional capital
      for us to operate.





If
      we
      choose to launch a more aggressive expansion campaign, management
      will seek long-term financing through additional debt or equity financing of
      up
      to $15 million to fund rollout of additional zone operations. In
      such a
      case, we would expect to raise this capital through an additional stock offering
      once our stock price has stabilized. There
      is
      no assurance that the company will be able to obtain additional financing on
      terms acceptable to its management. If we
      are unable to raise such additional capital, our continued growth potential
      could be constrained. The company
      has investors who have indicated a willingness to contribute equity to finance
      on-going operations  and
      the
      Company did obtain a commitment for $12 million in funding in March, 2005 that
      it declined as management believes they will obtain better financing terms
      from
      interested prospective investors.





Management
      and independent contractors providing services to the company have agreed to
      accept shares as a means of paying for critical services to implement its
      business plan without substantial use of cash. The Company has limited plans
      to
      hire additional employees until management is successful in raising capital
      through the private placement offering. HouseRaising’s management has not
      entered into any commitments for significant capital expenditures, except the
      software development project (System C), whereby the company issues shares
      of
      common stock for services rendered.





On
      a
      long-term basis, liquidity is dependent on continuation and expansion of
      operations, receipt of revenues, and additional infusions of capital and debt
      financing. Once the zone operations are fully implemented, the cash flow from
      such operations will be sufficient to fulfill our expected future cash needs.





Demand
      for our services will be dependent on, among other things, market acceptance
      of
      our services, the real estate market in general, and general economic
      conditions, which are cyclical in nature. Inasmuch as a major portion of our
      activities is the receipt of revenues from the sales of new home services,
      our
      business operations may be adversely affected by our competitors and prolonged
      recessionary periods. The company has provided a detailed list of risks and
      cautionary statements at the beginning of this document.





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**ITEM
      3. CONTROLS AND PROCEDURES**





*Quarterly
      Evaluation of Controls* .
      As of
      the end of the period covered by this quarterly report on Form 10-QSB, we
      evaluated the effectiveness of the design and operation of our disclosure
      controls and procedures ("Disclosure Controls"). This evaluation (“Evaluation”)
      was performed by our Chairman and Chief Executive Officer, Gregory J. Wessling,
      and President and Founder, Robert V. McLemore (jointly known as “CEO”), our
      Chief Financial Officer, Richard A. von Gnechten (“CFO”) and our Chief
      Administrative Officer, Christine M. Carriker. In addition, we have discussed
      these matters with our securities counsel and board. In this section, we present
      the conclusions of our CEO and CFO as of the date of the Evaluation with respect
      to the effectiveness of our Disclosure Controls.





*CEO
      and CFO Certifications* .
      Attached to this quarterly report, as Exhibits 31.1 through 31.4, are certain
      certifications of the CEO and CFO, which are required in accordance with the
      Exchange Act and the Commission's rules implementing such section (the "Rule
      13a-14(a)/15d-14(a) Certifications"). This section of the quarterly report
      contains the information concerning the Evaluation referred to in the Rule
      13a-14(a)/15d-14(a) Certifications. This information should be read in
      conjunction with the Rule 13a-14(a)/15d-14(a) Certifications for a more complete
      understanding of the topic presented.





*Disclosure
      Controls* .
      Disclosure Controls are procedures designed with the objective of ensuring
      that
      information required to be disclosed in our reports filed with the Commission
      under the Exchange Act, such as this quarterly report, is recorded, processed,
      summarized and reported within the time period specified in the Commission's
      rules and forms. Disclosure Controls are also designed with the objective of
      ensuring that material information relating to us is made known to the CEO
      and
      the CFO by others, particularly during the period in which the applicable report
      is being prepared.





*Limitations
      on the Effectiveness of Controls* .
      Our
      management does not expect that our Disclosure Controls will prevent all error
      and all fraud. A control system, no matter how well developed and operated,
      can
      provide only reasonable, but not absolute assurance that the objectives of
      the
      control system are met. Further, the design of the control system must reflect
      the fact that there are resource constraints, and the benefits of controls
      must
      be considered relative to their design and monitoring costs. Because of the
      inherent limitations in all control systems, no evaluation of controls can
      provide absolute assurance that all control issues and instances of fraud,
      if
      any, within the Company have been detected. These inherent limitations include
      the realities that judgments in decision-making can be faulty, and that
      breakdowns can occur because of simple error or mistake. Additionally, controls
      can be circumvented by the individual acts of some persons, by collusion of
      two
      or more people, or by management override of the control. The design of a system
      of controls also is based in part upon certain assumptions about the likelihood
      of future events, and there can be no assurance that any design will succeed
      in
      achieving its stated objectives under all potential future conditions. Over
      time, control may become inadequate because of changes in conditions, or because
      the degree of compliance with the policies or procedures may deteriorate.
      Because of the inherent limitations in a cost-effective control system,
      misstatements due to error or fraud may occur and not be detected.





*Scope
      of the Evaluation* .
      The CEO
      and CFO's evaluation of our Disclosure Controls included a review of the
      controls' (i) objectives, (ii) design, (iii) implementation, and (iv) the effect
      of the controls on the information generated for use in this quarterly report.
      In the course of the Evaluation, the CEO and CFO sought to identify data errors,
      control problems, acts of fraud, and they sought to confirm that appropriate
      corrective action, including process improvements, was being undertaken. This
      type of evaluation is done on a quarterly basis so that the conclusions
      concerning the effectiveness of our controls can be reported in our quarterly
      reports on Form 10-QSB and annual reports on Form 10-KSB. The overall goals
      of
      these various evaluation activities are to monitor our Disclosure Controls,
      and
      to make modifications if and as necessary. Our intent in this regard is that
      the
      Disclosure Controls will be maintained as dynamic systems that change (including
      improvements and corrections) as conditions warrant.





*Conclusions* .
      Based
      upon the Evaluation, the Company's CEO and CFO have concluded that, subject
      to
      the limitations noted above, our Disclosure Controls are effective to ensure
      that material information relating to the Company is made known to management,
      including the CEO and CFO, particularly during the period when our periodic
      reports are being prepared.





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**PART
        II**


**ITEM
      1. LEGAL PROCEEDINGS.**





In
      November 2004, Robert V. McLemore, President and Founder of HouseRaising,
      entered into a contract whereby he agreed to sell Nite Capital, LP, an
      investment firm based in Chicago, Illinois, a certain number of shares of his
      personal stock in return for Nite Capital’s agreement not to sell the shares for
      a set period of time and not to short sell the shares. It is Mr. McLemore’s
      belief that Nite Capital defaulted on this contract, and, as a result, McLemore
      refused to complete the transaction until a review of the short selling
      activities of Nite Capital and its principles could be completed. In connection
      with such review, HouseRaising filed a complaint with the NASD which requested
      an investigation into what management termed a “wave of coordinated naked short
      selling” in the HouseRaising’s common stock over a three month period of time.
      Management of HouseRaising believes that this coordinated effort may have
      violated NASD rules, as well as applicable federal securities laws.





As
      a
      result of Mr. McLemore’s and HouseRaising’s actions, on June 27, 2005 Nite
      Capital filed a complaint in the U.S. District Court for the Northern District
      of Illinois, Eastern Division, against Robert V. McLemore and HouseRaising,
      in a
      matter captioned as Nite Capital, LP, Plaintiff v. Robert V. McLemore and
      HouseRaising, Inc., Defendants, 05C 3757. The complaint alleges, among other
      things, a breach of contract by the Defendants and seeks damages, jointly and
      severally, in an amount at least equal to $353,320, as well as punitive
      damages.





As
      mentioned above, the terms of the contract at issue are disputed by the
      Defendants, and HouseRaising reports that it was not even a party to the alleged
      contract. It intends to promptly move for a dismissal of the claims against
      it,
      which, it believes amount to a thinly disguised effort to insert HouseRaising
      into a dispute between two private parties.





Mr.
      McLemore and HouseRaising have retained counsel admitted to practice in the
      U.S.
      District Court for the Northern District of Illinois, and they intend to
      vigorously defend this action. The complaint was first served on the Defendants
      on July 13, 2005.





**ITEM
      2. CHANGES IN SECURITIES.**





During
      the quarter ended June 30, 2005, the company provided restricted stock for
      services rendered. The Company provided Mordechai Friedman 370,000 restricted
      shares for business consulting services associated with working with existing
      contacts and developing future contacts in the investment industry to introduce
      the Company and improve investor awareness. The Company provided Zerah Chayil,
      Inc. 525,000 restricted shares for business consulting services associated
      with
      working with existing contacts and developing future contacts in the investment
      industry to introduce the Company and improve investor awareness. The Company
      provided Jeannie H. Spin 25,000 restricted shares for business consulting
      services associated with implementation of the company’s business plan. The
      Company provided Bruce Nurse 5,000 restricted shares for business consulting
      services associated with implementation of the company’s business plan. The
      Company provided Shari Limud, Inc. 474,106 restricted shares for business
      consulting services associated with improving investor awareness of the company.
      The Company provided Andre Nazarian 17,500 restricted shares for business
      consulting services associated with locating and making preliminary
      investigations into local homebuilders who meet the builder profiles established
      by the company. The Company provided Ludwik F. Zon 90,000 restricted shares
      for
      business consulting services associated with implementation of the company’s
      business plan. The Company provided Sussex Avenue Partners 50,000 restricted
      shares in exchange for working with existing contacts and developing future
      contacts in the investment industry to improve investor awareness of the
      company. The Company provided Independence Tower 83,666 restricted shares in
      exchange for the same amount of shares previously reflected as common stock
      subscribed for office space provided to the Company. For each of these
      issuances, the Company relied upon Section 4-2 of the Securities Act of 1933
      for
      exemption with issues of these shares.





As
      part
      of a severance package with Mr. Charles M. Skibo as Chairman and CEO, the
      Company entered into a Settlement Agreement (the “Settlement Agreement”) whereby
      Mr. Skibo was compensated prior to his resignation with a grant of options
      to
      purchase shares of common stock that are exercisable over a four year period
      of
      time beginning September 1, 2005, having a value equal to $200,000 per year
      (based on the price of the stock at that time). In addition, he was granted
      an
      option to purchase shares of common stock having a value of $100,000, which
      was
      exerciseable immediately. The Company also agreed to deliver Mr. Skibo an
      out-of-the-money warrant vesting over four years to purchase three million
      shares, which can be exercised over a 10-year period of time. We relied on
      section 4-2 of the Securities Act of 1933 for exemption with issue of these
      options.





**ITEM
      3. DEFAULT UPON SENIOR SECURITIES.**





None.





22
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          of Contents*





**ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OFSECURITY
      HOLDERS**





On
      May 5,
      2005, HouseRaising held its Annual Meeting of Shareholders at its headquarters
      in Charlotte, North Carolina. An Information Statement on Schedule 14C was
      prepared in connection with the meeting, and was filed with the Commission
      and
      mailed to shareholders of record prior to the meeting. Holders of shares
      representing a majority of the outstanding voting power present at the meeting
      in person or by proxy voted in favor of a slate of eight directors nominated
      by
      management and for the appointment of Traci J. Anderson, CPA as HouseRaising’s
      auditor for fiscal 2005.





**ITEM
      5. OTHER MATTERS**





**Management
      Change**





On
      June
      23, 2005 HRI announced the appointment of Gregory J. Wessling as the Company’s
      Chairman and Chief Executive Officer. Mr. Wessling replaced Mr. Charles M.
      Skibo
      who decided to retire after serving the company in a similar capacity since
      the
      completion of the reverse merger in 2004. Commensurate with this appointment,
      the Company entered into a Management Agreement with Mr. Wessling that contains
      substantially similar terms and conditions as the Management Agreement with
      Mr.
      Skibo which was reported to the SEC as Exhibit 10.2 of the Company’s Annual
      Report on Form 10-KSB. Mr. Wessling is a former Senior Executive and 33 year
      veteran of Lowe’s Companies, Inc. and was a member of the executive management
      team that transformed Lowe’s Companies, Inc. from a small regional lumber and
      building supply retailer into a nationwide chain of home products and
      improvement centers with 1,100 stores in 48 states.





Commensurate
      with the engagement of Mr. Wessling as Chairman and CEO and termination of
      Mr.
      Skibo in the same capacity, the Management Agreement for Mr. Skibo, which is
      incorporated by reference herein, was terminated and replaced by a Settlement
      Agreement, which is incorporated by reference herein. In addition, as a result
      of the resignation of Ms. Sherron Skibo, the management agreement with Ms.
      Skibo
      previously filed as Exhibit 10.3 of the Company’s Annual Report on Form 10-KSB
      is cancelled without further obligation.





**Current
      Status of Announced Transactions**





The
      Company has previously announced an agreement in principle to acquire
      LearnBytes, LLC, a North Carolina limited liability company, which is engaged
      in
      the business of web-based multimedia program design and development. The Company
      entered into an asset purchase agreement with LearnBytes, LLC dated as of August
      1, 2005 pursuant to the company purchasing all the assets of LearnBytes, LLC,
      including intellectual property and its name, for 500,000 restricted shares
      of
      HouseRaising stock as reported on SEC Form 8-K on August 10, 2005, incorporated
      herein by reference. The valuation of assets purchased in this agreement is
      approximately $150,000, based on unaudited financial statements. The transaction
      closed on August 4, 2005. HouseRaising subsequently entered into consulting
      agreements with the former LearnBytes personnel which the principal purpose
      in
      the near term to complete System C for the company and in the long-term to
      build
      and run HouseRaisingAcademy.





On
      April
      22, 2005, HouseRaising entered into an agreement to acquire Integrity
      Contractors Inc. (“ICI”) of Pensacola, Florida. ICI’s President/Founder has
      joined HRI’s management team as Vice President and National Manager of Project
      Development. The company plans to use this acquisition to launch its Northwest
      Florida Zone operation in the future. The acquisition itself will not have
      a
      material impact on the balance sheet of the Company and was completed in the
      second quarter.





On
      March
      31, 2005, HouseRaising, Inc. entered into a Membership Interest Purchase
      Agreement with COBS Homes, LLC, a California limited liability company (“COBS”),
      and all of the members of COBS Homes (“Members”), in which HRI agreed to
      acquire, subject to the satisfaction prior to closing of certain conditions
      precedent, all of the membership interests, and agreed to enter into employment
      agreements and non-compete agreements with certain of the Members for a
      consideration consisting of cash and restricted common stock having a combined
      aggregate market value of approximately $5.0 million. On April 4, 2005, the
      Agreement was amended to provide, among other things, that the closing must
      occur on or before July 1, 2005, or HRI or COBS may terminate the Agreement.
      A
      copy of the Agreement and the Letter Agreement which amended it were filed
      with
      the SEC on April 6, 2005.





On
      May 2,
      2005, HouseRaising gave notice of its intention to terminate the Agreement
      pursuant to Section 1.11 thereof, and not to consummate the acquisition, based
      upon the results of its due diligence investigation of COBS Homes. HouseRaising
      management visited the facilities in April and interviewed key personnel of
      COBS
      Homes, as well as reviewed its unaudited financial results for the year ended
      December 31, 2004 and the first quarter ended March 31, 2005. After reviewing
      COBS current operations, HouseRaising decided not to pursue the acquisition.
      The
      Company will instead invest in accelerating growth of its in-house
      HomeBuyerDirect division, operating from corporate headquarters in Charlotte,
      North Carolina. Inasmuch as there was no deposit or earnest money paid in
      connection with this acquisition, there will be no termination penalties
      incurred by the Registrant as a result of its decision.





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**Affiliation
      Agreements**





On
      March
      31, 2005, HRI and CitiMortgage, Inc. (“CitiMortgage”) entered into an
      Affiliation Agreement pursuant to which CitiMortgage will be the sole and
      exclusive lender participating with HouseRaising and will have the right of
      first offer on all construction and permanent mortgage financing to HRI’s
      customers. In return, CitiMortgage has granted HRI a non-exclusive right to
      use
      the CitiMortgage name and logo in HRI’s advertising for the purpose of
      indicating the availability of loan financing by CitiMortgage to qualified
      applicants.





On
      July
      11, 2005, HRI announced the formation of a strategic partnership and operating
      line of credit with Wachovia Corp. Through this partnership, Wachovia has agreed
      to become the lead bank in assisting HouseRaising to fund its national expansion
      plan. Wachovia also approved a $1 million line of credit to fund the Company’s
      operational requirements which is secured by equity security of the company
      beneficially owned by an officer of the company. Wachovia is one of the nation’s
      foremost banking and financial service institutions.





**Other
      Event**





On
      May 9,
      2005, HouseRaising filed a letter with the NASD, which requested an
      investigation into what management termed a wave of coordinated naked short
      selling in the Company’s common stock over a three month period of time.
      Management believes that the coordinated short selling activity may have
      contributed to a decline in the closing price of the Company’s common stock from
      $2.00 per share on February 1, 2005 to $0.53 per share on May 6, 2005, and
      this
      coordinated effort may have violated NASD rules, as well as applicable federal
      securities law. Management cannot predict the outcome of this
      request.




24
 *Table
          of Contents*


**ITEM
                      6. EXHIBITS AND REPORTS ON FORM
                      8-K****(a)
                      Reports on Form 8-K**Subsequent
                      to December 31, 2004, the Company filed the following Current
                      Reports on
                      Forms 8-K with the SEC as follows:Dated
                      (filing date)
                  Items
                      ReportedAugust
                      4, 2005 (August 10, 2005)
                  Form
                      8-K Entry Material AgreementJuly
                      13, 2005 (July 19, 2005)
                  Form
                      8-K Other EventsJune
                      23, 2005 (July 1, 2005)
                  Form
                      8-K Entry Material Agreement, Termination Material Agreement
& Changes
                      inDirectors
                      or Principal OfficersMay
                      13, 2005 (May 24, 2005)
                  Form
                      8-K Changes in Directors or Principal OfficersMay
                      2, 2005 (May 11, 2005)
                  Form
                      8-K Termination Material AgreementMay
                      9, 2005 (May 9, 2005)
                  Form
                      8-K Other EventsApril
                      4, 2005 (April 8, 2005)
                  Form
                      8-K Entry Material AgreementMarch
                      31, 2005 (April 6, 2005)
                  Form
                      8-K Entry Material AgreementMarch
                      16, 2005 (March 22, 2005)
                  Form
                      8-K Termination Material AgreementMarch
                      1, 2005 (March 7, 2005)
                  Form
                      8-K Change in Directors or Principal OfficersFebruary
                      25, 2005 (March 4, 2005)
                  Form
                      8-K Entry Material Agreement**(b)
                      Exhibits**Exhibits
                      for HouseRaising and its subsidiaries are listed below.
   **INDEX
                      TO EXHIBITS**The
                      exhibits designated by an asterisk (*) are filed herein. The
                      exhibits not
                      so designated are incorporated by reference to the indicated
                      filing.Exhibit
                      No.
                  Descriptions2.1.1
                  Agreement
                      and Plan of Merger, dated February 19, 2004 (incorporated by
                      reference
                      from Exh. 2 to the Definitive Information Statement filed on
                      August 10,
                      2004)3.1
                  Articles
                      of Incorporation (incorporated by reference from Exh.3 of Form
                      SB-2 filed
                      April 11, 2002)3.2
                  Articles
                      of Amendment to Articles of Incorporation to Change Name (incorporated
                      by
                      reference from Exh. 3 to the Definitive Information Statement
                      filed August
                      10, 2004)3.3
                  Bylaws
                      of HouseRaising, Inc. (incorporated by reference from Exh.3
                      to Form SB-2
                      filed April 11, 2002)3.4
                  Articles
                      of Amendment for Class A Voting Convertible Preferred Stock
                      (incorporated
                      by reference from Exh. 4 to the Definitive Information Statement
                      filed
                      August 10, 2002)31.1
                  Rule
                      13a-14(a)/15d-14(a) Certification of Gregory J.
                      Wessling, Chairman and Chief Executive Officer*31.2
                  Rule
                      13a-14(a)/15d-14(a) Certification of Robert V.
                      McLemore, President and Founder*31.3
                  Rule
                      13a-14(a)/15d-14(a) Certification of Richard A. von
                      Gnechten, Chief Financial Officer*31.4
                  Rule
                      13a-14(a)/15d-14(a) Certification of Christine M.
                      Carriker, Senior Vice President & Chief Administrative
                      Officer*32.1
                  Section
                      1350 Certification of Gregory J. Wessling,
                      Chairman and Chief Executive Officer*32.2
                  Section
                      1350 Certification of Robert V. McLemore,
                      President and Founder*32.3
                  Section
                      1350 Certification of Richard A. von Gnechten,
                      Chief Financial Officer*32.4
                  Section
                      1350 Certification of Christine M. Carriker,
                      Senior Vice President and Chief Administrative
                      Officer*_________________________________*-Filed
                      herewith


-signature
      page follows-


25
 *Table
              of Contents*


SIGNATURES





Pursuant
      to the requirements of Section 13 or 15 (d) of the Securities Exchange Act
      of
      1934, the registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, thereunto duly authorized.





HOUSERAISING,
      INC.


(Registrant)








/s/
      Gregory J. Wessling


Date:
      August 15,
      2005 Gregory
      J. Wessling


Chairman
      of the Board and


Chief
      Executive Officer


(Principal
      Executive Officer)








/s/
      Robert V. McLemore


Date:
      August 15,
      2005 Robert
      V.
      McLemore


President
      and Founder


(Principal
      Executive Officer)








/s/
      Richard A. von Gnechten


Date:
      August 15, 2005   Richard
      A. von Gnechten


Chief
      Financial Officer


(Principal
      Financial Officer)








/s/
      Christine M. Carriker


Date:
      August 15, 2005    Christine
      M. Carriker


Senior
      Vice President,


Chief
      Administrative Officer


(Principal
      Accounting Officer)





26