Housing affordability and availability continues to be at the top of the list for Saugeen Shores Council.
At Monday’s Council meeting (Jan. 29th), Habitat for Humanity’s Greg Fryer presented several options available in what could be an Affordable Housing Partnership.
Habitat bridges the gap for those priced out from attaining an affordable home. Families are selected based on three criteria – the need for affordable housing, ability to pay a mortgage and willingness to partner with Habitat. Approved applicants are then able to purchase their home at fair market value with no down payment, zero interest and a 20-year term mortgage held by Habitat.
Mortgage and property tax payments are calculated so that families pay only 25% of their income making housing costs, such as utilities, more affordable. As part of their partnership with Habitat, families also must contribute 500 volunteer hours building their home and other Habitat homes alongside a team and volunteers.
Mortgage principal payments are then invested into Habitat’s home-building program that, in turn, enables the building of more homes in the future. In addition, Habitat retains the first right of refusal to buy back a home which ensures homes are kept in the affordable housing sector for at least 20 years. Through shared equity, market appreciation is shared between Habitat and homeowners so that homeowners cannot take advantage of a rising market for quick financial gain.
The three ReStores in Bruce Grey operate as a social enterprise with net income covering 100% of the organization’s administrative expenses.
In Saugeen Shores, Habitat has built three housing units in the town – a single dwelling in 2002 and a semi-detached in 2014. In his presentation, Fryer said that Habitat has been “.. exploring with Saugeen Shores officials and staff, opportunities for further Habitat builds on town-owned land since 2015.” “Habitat is keenly interested in Council’s intent to make surplus land available for affordable housing as Habitat’s model meets all the criteria outlined in the Guiding Principles.”
In some municipalities, including the region of Waterloo and Leamington, 3P (public-private) partnerships are currently being implemented with Habitat. On large properties identified in RFPs (Requests for Proposals), Habitat is prepared to propose a partnership with the Town and a private Builder/Developer to scale up development.
Under a 3P, Town property would be sold or donated to a developer willing to build entry-level, below market housing (rental & ownership) or a designated number of lots to Habitat to build homes OR Habitat could purchase a percentage of units built by the developer at a reduced price which Habitat would then sell to qualifying families under its housing mortgage model. Those units would then remain affordable in perpetuity through tools such as an ‘Option Agreement’ registered on title.
In addition, all units sold must be the principal residence of the purchaser which would be a condition of sale and … no units would be sold to investors.
According to Fryer’s delegation, the proposal would be a win-win situation.
- Town surplus land is used for attainable, lower-priced housing built FAST
- Developer has reduced costs (land, fees and expedited approval) able to sell to Habitat and the market at a LOWER PRICE
- Habitat would be able to SERVE MORE FAMILIES
Mayor Luke Charbonneau said that the town is working through a process with surplus lands. “I think what you’ll hear around this table is a lot of support for Habitat for Humanity and a lot of interest in working with Habitat. We will refer your presentation to our staff and ask them to engage directly with you and Habitat to talk about what you are putting on table here tonight and see what we can do to advance a Habitat project here in Saugeen Shores.”
Vice-deputy Mayor Mike Myatt asked that, if lands were made available, would it be possible to build five homes per year instead of two as over the past years. “If there was a public-private partnership with local contractors, is the infrastructure in place with volunteers and is a home still approximately $300,000 if built by volunteers?”
Fryer confirmed that the volunteers are there and that the cost is around the $300,000 for a new home build. “We have been in discussion with a local builder who has changed their model to build entry-level homes. The president of this company were telling him that they couldn’t afford the houses they were building so he changed his model. They couldn’t build high-end luxury homes as the need is for entry-level homes and he risked losing employees as they would have to move out of the area to find affordable housing.”
Myatt also asked that, again if land were made available, would there be assurances that the homes would be for Saugeen Shores’ residents. Fryer said that Habitat could also make that a condition of sale. He also said that, although homes are designed for a family’s need, the most popular is for three-bedroom homes.
“This can’t come quick enough for me,” said Myatt. “There are families out there who want to get into a first forever home and I can’t wait for this to become a reality.”
Councilor Bud Halpin also said that he was excited to see the presentation. “We are in a unique situation in Saugeen Shores. We have a great opportunity to make a real difference in affordable housing. We have the land, we have a willing partner with Habitat and we have a supportive Council. I am committed to doing whatever I can to make this a reality.” Halpin explained that, when he was a teacher, his classes in fact worked on the two Habitat homes that were built in Saugeen Shores and worked on Habitat homes at Saugeen First Nation. “I have seen first hand the good work and affects of Habitat … this will be the Council that gets something done for affordable housing.”
Councillor John Divinski as if there were the possibility of Habitat expanding beyond single-family homes or duplexes.
Fryer pointed out that Habitat attempts to maximize land and that there is currently an eight-home townhouse development in Owen Sound and there are presently 33 families at Saugeen First Nation that will be owners of Habitat homes.
Cheryl Grace said that Habitat homes are built with quality and provide so many levels, including stability. “I don’t know how anyone could ever criticize the work that Habitat does.”
Councillor Dave Myette, who has worked on several Habitat builds, said he also hopes the partnership with newly formed Sparks program will result in hands-on experience and getting houses built. “It’s a great equity formula. A Habitat homeowner can build equity toward a downpayment and, if and when the owner moves out, the home is then available for another Habitat family.”
“I have never heard anyone say anything negative about Habitat for Humanity,” said Mayor Charbonneau. “We are really fortunate that you (Habitat) would come to our community and think of us as a place where we can build. I remember the sod-turning for the 2014 building and how exciting it was to meet those families and it would be great to do that again in our community. We have a housing crisis here just like everywhere … and there is no one solution but there is no question that Habitat is part of the solutions. We look forward to the fruits of your discussions with our staff.”
