Canadian Funding Corp Reviews CMHC Affordable Housing Reports

I’m pleased to join with you today as we announce the launch of the Tipi Mitawa Aboriginal Homeownership Pilot Program.

This unique partnership will allow First Nations people living in urban centres in Manitoba to have a greater opportunity to own their homes and improve their lives.

Tipi Mitawa First Nations have demonstrated their commitment towards their people through this program. Everyone here today can appreciate the benefits of market-based housing, and how it will improve the lives of families across Canada.

Through its financial support, our government is working with the province of Manitoba to address immediate housing pressures faced by Aboriginal people living off-reserve. This is only one of the many ways in which we are taking action to address the challenges confronted by Aboriginal Canadians so that they can enjoy a better quality of life.

In Budget 2006, our government made an investment of $1.4 billion in housing trusts for affordable housing, northern housing and housing for Aboriginal people living off-reserve. Of this amount, over $61.5 million was allocated to Manitoba and Tipi Mitawa will benefit from this funding today.

The Government of Canada is committed to making affordable housing more available for Aboriginal families in Manitoba and across Canada. This initiative will make more homes available for First Nations people living in Manitoba’s cities and serve as a model for First Nations communities across the country who are looking for new ways to help their members enjoy greater access to homeownership.

We are doing so much more in communities across this province. Through the Canada – Manitoba Affordable Housing Program, more than $36 million has been allocated to create more affordable housing.

We also provide approximately $2 billion a year in housing assistance to support some 630,000 households across the country. For the people of Manitoba, this means more than $122 million annually, in support of some 41,350 households.

This funding will be an investment for the people of Manitoba for years to come.

In a few moments, we will hear from a special guest — Alisha Bigelow. Alisha is the first applicant and she will share with us what today’s announcement will mean for her and her two children. And that’s why the Tipi Mitawa Pilot Program is so important.

Posted by Moishe Alexander CEO of the Canadian Funding Corp.

Read more HERE

It is well known to Canadian Funding Corp that one of the toughest places for housing in Canada is Nunavut. Building costs are estimated to be at least 60 per cent higher than costs in southern Canada, because building materials must be transported from the south.The harsh climate means a short construction season and makes economical energy-efficient design a challenge.

Canadian Funding Corp knows that there are other housing challenges facing Nunavut–a high youth population; a high percentage of renters and a short cultural history of permanent housing. In Nunavut, a northern territory that is twice the size of Ontario, with a population of about 30,000, the Material Assistance Program (MAP) provides Nunavummiut– residents of Nunavut–with an affordable way to own their own homes.

MAP is one of several Nunavut Housing Corporation (NHC) programs to help people realize their dreams of homeownership. MAP provides a selection of three- and four-bedroom home designs, as well as technical assistance and homeownership counselling. MAP pays the cost of a package of materials need to build a new home and pays the shipping costs to the client’s community.

The client is responsible for obtaining financing from a financial institution to cover construction costs.

Canadian Funding Corporation lays out the affordable housing solution wherein to qualify, applicants must show that they need assistance, that they qualify for a mortgage from a commercial lender and that they plan to use the home as their principal residence.

The assistance under the MAP is a 10-year forgivable loan. MAP offers a choice of three- and four-bedroom designs along with drawings and specifications. Successful applicants receive counselling about owning a home and advice and guidance about developing a construction plan, choosing a contractor–who must be approved by the NHC.

The client’s responsibilities include buying or leasing the land for the house; finding a contractor; obtaining building permits; obtaining a mortgage; and working with a lawyer on the legalities of purchasing and owning a house.

The NHC inspects the house during construction and when the house is completed to ensure that it meets building codes and standards and NHC energy-efficiency standards.

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