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Equity Co-op Ownership Housing
in Nova Scotia
HSC 2014 Regeneration Forum
Tim Welch Consulting Inc.
February 10, 2014
Nova Scotia Housing Strategy
• Released spring 2013
• Focus on innovative approaches to financing
as a path to home ownership
• Importance of building equity for purchasers
– Sub-goal of retaining out of province university
students
Market: Halifax
• HRM Population 390,000
– growing 4.7% 2006 -2011
– Need 60,000 new dwellings by 2031
• Average price $267,000
– Increasing 4.6% annually over 5 years
• 6,000 new apartments (condo and rental) in
past five years
• Average 2 bdrm rent in central Halifax $1,165
Condo Prices• Average condos $218,000
• New condos in central Halifax high $200,000+
• $284,900 large one bedroom
Policy Goals
• Build at cost
• Downpayment assistance
• Co-operative community
• Central location/transit/walkability
• Ongoing affordable price
• Building equity
Build at Cost
• Use of existing public land
• Non-profit development consultant
• Advocate for waived/deferred municipal
charges and fees
Downpayment Assistance
• Roll land value, municipal fee deferral,
absence of developer profit into a 15 -20%
below market price
• Restrictive covenant on resale to keep price
below market for subsequent purchasers (tied
to average home price increase)
• reduce/eliminate CMHC insurance premium
• Potential to add further downpayment
assistance with extended IAH
Purchasers
• Purchasers income ceiling of 120% of median
income ($91,800)
• Purchaser education would be offered
• Purchaser would still need to qualify for first
mortgage
Co-operative Community
• Co-op structure, ownership and membership
linked
• All units owner occupied
• 50 - 60 units, good size for building sense of
community
• Support from co-operative sector through
development and operations
Location Goals
• Walkable neighbourhood – services/retail
• Good transit
• Modest parking requirements
• 3 options -2 north end, one central Dartmouth
Ongoing Affordability and
Building Equity
• Below market price continues to next
purchaser: goal of keeping price 15 – 20%
below market
• Still gives opportunity of building equity
through paying down first mortgage and
market appreciation (i.e. Over five years could
build $59,000 in equity)
565 Margaret St.-
Tim Welch: twelch@twcinc.ca
Phone (519) 624-9271 x234
Social Impact PlatformJanuary 2014
Agenda
TAS’s Affiliations
Four Pillars of SustainabilityTM
Community and Partnership Framework
Food Security Framework
Affordable Homeownership Framework
#ShapingBeautifulCities
#ShapingBeautifulCities
TAS believes that great cities are shaped by a strong
vision, one that continuously pushes the boundaries
of innovation. As city builders, we are in a position to
positively contribute to the neighbourhoods in which
we build, and to the greater city as a whole. By
connecting diverse partners and investing in socially
innovative enterprises, we’re creating positive impacts
beyond the physical footprints of our buildings.
TAS’s Affiliations
“Bullfrogpowered”
head office
Certified Benefit
Corporation
Listed on Social
Venture Exchange
TAS’s Four Pillars of Sustainability™
Economic Cultural Social Ecological
Community & Partnership Framework
Our mission is to be the most sought-after corporate
partner for effective neighbourhood engagement, and
an established resource for others engaging in cross-
sector city building partnerships in Toronto.
Our Partnerships
Sponsorships
Site
Activations
and
Community
Engagement
Project-specific
Partnerships
Corporate
Partnerships
Rooftop garden
BIA sponsorship
and engagement
Mass yoga on
build site
Junction Flea on
build Site
Design installation
for T.O. design fest
The Farm Lot on
King West
Ryerson Affordable
Homeownership Report
Food Security Framework
Our vision is to become an industry leader in the
advancement of community food security in the
neighbourhoods where we build, and
throughout the wider city as a whole.
Food Security Areas of Focus
1) Create spaces for urban agriculture on
our existing rooftops and properties.
2) Provide TAS homeowners with balcony
and/or rooftop growing space.
3) Support food-based social enterprises.
4) Create food-focused mixed-use
buildings.
Affordable Homeownership Framework
To continually explore ways to create affordable
homeownership opportunities within TAS
developments and to be a voice in the wider
conversation on affordable housing issues in Toronto.
Affordable Homeownership Initiatives
1) Studio collaboration with Ryerson University’s
School of Urban and Regional Planning.
2) Partnership with Trillium Housing.
3) Partnership with Artscape Foundation.
Thank you
tasdesignbuild.com
@tasdesignbuild
#ShapingBeautifulCities
HSC Regeneration Forum February 2014
AFFORDABLE HOME OWNERSHIP PROGRAM Presented by: Bryan Lutes, President The Affordable Home Ownership Program offered by Wood Buffalo Housing & Development Corporation (WBHDC) was established in 2004. Since that time, 275 families and individuals have realized their dreams of owning a home.
To qualify for the program, applicants must:
• be a current resident of Fort McMurray; • have a gross household income less than the maximum (varies by project); • be a first time homeowner in the Municipality (with the exception of joint property
ownership in a previous marriage or common law relationship); • qualify for the first mortgage amount from a lender.
The Purchase price is based on 90% of the appraised market value and is divided into two parts:
• The First Mortgage is provided by a conventional lender and recovers WBHDC’s costs to construct.
• The Second Mortgage, used to assist in the purchase, is held by WBHDC and divided into the Equity Loan and Affordability Loan, with the Equity Loan portion (10% of the purchase price) satisfying the requirement for the down payment.
• Both the Equity Loan and the Affordability Loan are registered as a charge on title. • The Affordability Loan is repayable to WBHDC, interest only, at a rate that varies
dependent on income. • Both portions of the Second Mortgage are repayable to WBHDC upon resale of the unit.
Restrictions are placed on the re-sale of units to prevent speculation and to preserve affordability for future buyers. If the owner wishes to resell their home within the first 3 years of ownership, WBHDC has the first right to purchase the property at the original purchase price. This first right of purchase is a caveat registered on title. After 3 years, the home may be sold on the open market. If the market declines and the house can only be sold at a loss; the loss will be absorbed to a maximum of the amount of the second mortgage.
Units can be re-financed at any time. Should the borrower’s income increase to the point where they can assume a larger mortgage, they have the option to refinance and remain in the unit as residents. If the home is never sold or refinanced, the borrower will pay only interest on the Affordability Loan. If the first mortgage is paid off, the second mortgage will be amortized and payments of principal and interest will be made to WBHDC by the owner.
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