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The National Housing Strategy’s new $13-billion co-investment fund – administered by CMHC – is a game-changer for families in need, says Habitat for Humanity’s Mark Rodgers
To mark Canada’s 150th anniversary, Habitat for Humanity Canada worked with Canada Mortgage and Housing Corporation (CMHC) and other partners to build 150 new homes in 40 communities across the country.
Reflecting back on that week in July 2017, Mark Rodgers, president and CEO of Habitat for Humanity Canada says, “It is a dream of many of these families – a place they can own and build equity.’’
Habitat for Humanity provides zero-interest, no down payment financing, and with the help of 55 local organizations and over 70,000 volunteers each year, has put more than 500 low-income families in homes across Canada over the last two years.
That’s why Canada’s new National Housing Strategy (NHS) is music to the ears of organizations like Habitat for Humanity.
“We applaud the fact that for the first time in Canadian history, there is a nationally coordinated strategy to address housing issues across this country,” Rodgers says.
The NHS is a 10-year, $40-billion plan to cut chronic homelessness in half, remove 530,000 families from housing need and invest in the construction of up to 100,000 new, affordable homes. The plan is focused on helping Canadians with pressing housing needs, including women and children fleeing violence, persons with disabilities, Indigenous peoples, seniors, veterans, and people dealing with mental health and addiction issues.
A key part of the NHS for organizations like Habitat for Humanity is the National Housing Co-Investment Fund (NHCF). Administered by the Canada Mortgage and Housing Corporation (CMHC), the fund will provide $13.2-billion over the next decade, earmarked for affordable housing.
“The [NHCF] fund is the largest single piece of the National Housing Strategy,” says Charlie MacArthur, senior vice-president of regional operations and assisted housing at CMHC.
Comprised of loans and grants, the NHCF will provide money for provincial governments, municipalities and non-profits to build new affordable housing and upgrade existing, aging units. To help these investments go further, up to $200-million in surplus federal lands and buildings will be made available to affordable housing providers at low or no cost.
Having launched the NHCF officially in May of this year, CMHC is now working with partners like Habitat for Humanity to find suitable projects to support.
The goal is to help vulnerable populations and low-income, working families break the cycle of poverty, MacArthur says. Home ownership gives recipients a chance to gain independence, pay a mortgage and truly participate in their communities.
He notes that some of the funds provided by the NHCF may be grant money, while others could be forgivable loans and that roughly half will go to entirely new housing stock.
“Depending on the project, we want to remain flexible,” MacArthur says.
He points out that though the funding commitment is for 10 years, the overall strategy is to ensure the long-term health of Canada’s affordable housing stock. This includes longer amortization periods for loans that can also last well beyond the end of the NHS mandate. For example, NHCF loans for retrofits can be as long as 40 years, and those for new construction can be amortized over 50 years.
Habitat for Humanity has submitted an application to the NHCF, and if approved, Rodgers expects they could build about 500 homes a year if their application is successful.
He says the organization is “extremely pleased” to see the federal government include home ownership in their strategy.
“This is a significant step, because affordable home ownership has traditionally not been in the area the government has focused its attention on with any significant funding,” he says.
Because the initiative is also focused on community partnerships, this allows for multiple sources of funding, notes Rodgers. Non-profits, municipalities, the provinces and even corporations could pool finances to work together on larger projects than they could tackle on their own.
“Right now, Habitat for Humanity is the only provider of affordable home ownership in Canada, and we have affiliates in every province and territory,” he says. “My hope is that we can draw on significant funding with partners to support multiple projects in multiple communities across the country.”
MacArthur notes that the NCHF is a key part of the overall NHS plan. The hope is that the NCHF’s $13-billion commitment will attract millions in additional investments from the provinces, territories, municipalities, non-profit and private-sector partners across the country.
“We want to help build community housing that is resilient and can stay in place for another generation of families,” he says. “And partnerships are absolutely necessary if we’re going to take the bold steps to remove half a million Canadians from housing need.”
The goal is to create livable communities where families can thrive, says MacArthur.
“This is about people, and helping to change outcomes for their lives.”
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