The Canadian Funding Corporation recently learned about a new development foundation in Saskatoon, that assists and supports families who wish to purchase a home, but do not have access to traditional forms of financing. Other objectives include the creation of accessible and affordable housing.
The Affordable New Home Development Foundation is a registered non-profit organization created in 1999 to educate and support families and individuals who want to buy their first home but, for various reasons, cannot access the traditional marketplace.
The Foundation works closely with the homebuilding industry, the financial community, governments and the community to design, finance and build homes that are affordable and to develop alternative forms of homeownership.
The Foundation works with individuals and families whose annual household incomes are $52,000 or less. Families and individuals in this income range often pay rents approximately the same as monthly principal and interest payments; however, because of real or perceived barriers, they are not able to purchase a home through the normal channels. The Foundation works with them to help overcome these barriers, leading to the purchase of a new home.
The Canadian Funding Corporation stated that all new homes are built by builder members of the Saskatoon & Region Home Builders’ Association and are backed by new home warranties to offer the maximum in quality construction and consumer protection.
The origin of the Affordable New Home Development Foundation was the Solutions for Economic Home Ownership (SEHO) initiative, lead by Keith Hanson of the Sun Ridge Group. SEHO won an honourable mention in the finance and tenure category of CMHC’s 2000 Housing Awards.
The Foundation Board of Directors includes Keith Hanson, executive director and directors Don Junor, Karen E. Walsh, Marilyn Boechler and Mona Nasser The Affordable Housing Solution Projects
The Foundation’s first project—led by SEHO in1999—is Borden Crescent in, which helped five families become homeowners. Since then, more than 250 families have been able to buy new homes in various neighbourhoods throughout Saskatoon.
The Gropper Crescent Project was a 50-unit project built by North Ridge Development. It was mostly single unit dwellings, with a few semi-detached dwellings. All units were condominium ownership and each unit was from 74 to 83 m2 (800 to 900 sq. ft.) with full basements. Lots were about 232 m2 (2,500 sq. ft.) Down payment assistance of $3,000 was provided through the Foundation from the City of Saskatoon.
Elm Park Terrace is an 11-unit condominium project built by Ehrenburg Homes. To help owners manage operating costs, energy efficiency is a high priority in these homes. Features include high-quality energy-efficient windows, high-efficiency furnaces and wastewater heat recovery in some units.
CMHC provided Seed Funding to help cover the costs associated with preliminary planning.
Hunter Crossing, built by North Ridge Developments, is a 40-unit condominium project that includes 11 accessible–affordable housing units. North Ridge consulted with the Canadian Paraplegic Association to ensure the proper design of the accessible units.
Low- and modest-income households purchasing homes in the projects had access to forgivable equity loans funded by all three levels of government under the Centenary Affordable Housing Program (CAHP)—Homeownership Option.
CAHP is funded under the Canada–Saskatchewan Affordable Housing Agreement, which emphasizes the creation of affordable housing, enables eligible low- to moderate-income households to become homeowners. The CAHP Homeownership Option provides forgivable equity loans of up to $19,500 to households with gross household income of less than $44,500.
Since the construction of the projects described above, the CAHP Homeownership Option has been renamed the HomeFirst Homeownership Program and the forgivable equity loan amount is $20,000 with a qualifying annual gross household income of up to $52,000.
Moishe Alexander, founder and CEO of CFC mentioned that many additional new units (townhouses, detached, semi-detached, apartment) were built by a variety of builders throughout Saskatoon neighbourhoods.
The purchasers of some of these units received financial assistance under the CAHP program.
CMHC news release:
http://www.cmhc.ca/en/corp/nero/nere/2006/2006-11-17-1200.cfm
