Tuesday 24 January 2017

AFFORDABLE OWNERSHIP HOUSING, DID YOU KNOW?



Did you  know?

Canada has a housing crisis, and affordable ownership housing offers several solutions. Here are just a few...











1. Relieves Rental Shortage - Every affordable home ownership unit purchased by a middle-income renter frees up a unit of affordable rental housing. 


2. Captures land appreciation - Affordable home ownership is the only form of affordable housing that can capture land value appreciation, using it to fund more affordable housing. 



3. Creates its own fund - When affordable home ownership developments use shared appreciation mortgages (SAMs) and revolving funds, the home ownership model does not rely on on-going government financial support or free government land.


4. Lowest default rates - Affordable home ownership programs have a low default rate of less than 1%. In the private ownership market the default rate is higher, at 2% – 3 %.

The National Housing Strategy Must Support Affordable Home Ownership

   Home ownership creates the kind of financial security that benefits Canadian families and Canada as a whole. It supports the economy of cities; it helps people prepare for their retirement; it frees up affordable rental housing in tight urban markets; and it builds a stable middle class. Canadians value the opportunities and security home ownership creates.

   Unfortunately, for many Canadians, home ownership is a dream increasingly out of reach. Home prices are increasing rapidly, yet median incomes are not. The Toronto Real Estate Board reported that home prices are up 23% from just last year. This trend keeps younger Canadians, low income families with children, and key workers further away from home ownership. There are more than 200,000 middle income earners (teachers, social workers, paramedics, nurses, etc.) who want to own a home but are unable to access the private ownership market (Canadian Urban Institute, 2016).

   Non-profit ownership housing organizations, like Options for Homes, are working to remedy this issue. While the Options model doesn’t rely on government funding, we can be even more effective with increased support form the federal government. The National Housing Strategy, set for release in early 2017, must include a scaling up of affordable ownership housing - not just affordable rentals -  for a comprehensive solution.


RECOMMENDATIONS: ACCESS TO CAPITAL AND ACCESS TO LAND

 

1. ACCESS TO CAPITAL

A significant barrier to scaling up production of affordable ownership housing involves access to funds for land acquisition, pre-construction costs (including consulting fees), marketing, and municipal permits.
The federal government should provide a $250 million revolving loan fund that would provide both short and long term project equity and be available to qualified non-profit producers.
The loans would be seeded by government, replenished by paybacks and require no ongoing financial commitment from government.

2. ACCESS TO LAND

Provincial and municipal governments should establish and administer an Affordable Housing Land List and identify actionable public lands suitable for sale to registered non-profit housing organizations.
The key benefit of public land being sold to non-profit housing producers is so they can acquire it at an ‘appraised market value’ prior to it being placed on the open market, allowing them to defer payment for the land for a period to be negotiated between the non-profit housing organization and the government. This enables non-profits to access land, while the government also receives full value for the asset.


Scaling up ownership housing initiatives addresses many of the reoccurring themes and issues outlined in the federal What We Heard summary – establishing a broader continuum of affordable housing for a variety of needs and markets, and improving access to housing, especially for first-time home buyers. Our hope at Options for Homes is that the National Housing Strategy does indeed support low and middle-income families ready to achieve the goal of homeownership and the non-profit affordable housing providers that are ready to help.



- Heather Tremain, CEO Options for Homes

Tuesday 3 January 2017

CITY OF COLOUR




At Options, we pick the neighbourhoods we build developments in knowing that there is something special about each. We respect the character of these communities, and the lifestyles of the neighbours. With any new condo development, the construction process can take up to two or more years. That’s two years of big machines, holes in the ground, beams, bricks, and piles of dirt. Let’s be honest, it can be disruptive. But at Options, we feel it’s important for us to honour communities. While we build, we don’t want to undermine the appearance of the neighbourhood – we want to enhance it! That is why we decided to partner with The PATCH Project (Public Art Through Construction Hoarding), and East York-based artist, Monica Wickeler, to create an art piece on the hoarding of #TheVillageByMainStation.  In Monica’s words, “the piece, [“City of Colour”] intends to showcase hope and optimism, and the transformation of homeownership: the progression of feelings towards joy and success.” This piece of community art will cover the construction behind it, and for the next year will make Trent Ave. a more vibrant, attractive street in the vibrant, attractive East York community. Thanks to the community members and everyone who came together to make this happen.